XRP Faces Bearish Pressures Amid Market Downturn: Analysts Divided On Next Move

Christian Encila

1 year ago

3 mins read

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XRP, the native cryptocurrency of the Ripple network, became a focal point in the face of the recent downturn in the broader market, facing the consequences of breaching a crucial support level and prompting uncertainties regarding its immediate outlook.

In tandem with Bitcoin’s descent below the $40,000 mark and Ethereum’s stumble beneath $2,200, XRP mirrored the trend, slipping below the pivotal $0.51 threshold for the first time since January 3.

XRP Vulnerability Sparks Differing Views

This abrupt breakdown laid bare the vulnerability of XRP’s current standing, triggering a wave of speculation about its potential trajectory in the near term.

Amid the market turbulence, analysts have offered a spectrum of conflicting predictions, leaving investors to navigate a complex landscape characterized by mixed signals.

The varying assessments of XRP’s future add an additional layer of uncertainty to an already tumultuous market environment, compelling investors to carefully weigh their options and stay attuned to the dynamic nature of cryptocurrency markets.

JD, a technical analyst, identified a long-term triangular pattern in XRP’s price chart. He predicts a potential further decline towards the lower trendline of this pattern, with the $0.28-$0.33 range identified as a potential “buy-the-dip” zone.

#XRP – May be creating “Hidden Bullish Divergence” on weekly (candle body close below red line would negate divergence)

A “wick” down the orange box is very possible. (Orange box been posted since November 2023!)

My personal DCA: 0.28 – 0.33 (HEAVILY!), 0.45, 0.51, 0.59

Don’t… pic.twitter.com/ipMsM0p7ZE

— JD 🇵🇭 (@jaydee_757) January 23, 2024

Ali Martinez, a veteran market observer, warned of a potentially steeper descent if XRP fails to hold above $0.55. Based on his Jan. 18 analysis, a breach of this level could trigger a significant drop, plummeting the token towards the $0.34 mark.

$XRP is currently grappling to maintain its footing at the crucial $0.55 support level. Should this support fail to hold, be prepared for a possible sell-off scenario that could see #XRP descending toward $0.34! pic.twitter.com/6oKObjpnnm

— Ali (@ali_charts) January 18, 2024

Alternatively, XRP Shark, another analyst, presented a more optimistic outlook. While acknowledging the possibility of a drop to the $0.35-$0.45 range, XRP Shark sees this as a potential buying opportunity and predicts a subsequent substantial recovery for the token.

Looking to load up a bit on XRP in the coming time between .35-.45 🍻 I personally think that will be the bottom area of this move down and a violent move to the upside is following. Invalidation below .30 cents (would be pretty bad to see it go past that level) 🍻 pic.twitter.com/OA0SbXOEOZ

— XRP_Shark (@XRP_Shark) January 22, 2024

At the time of writing, XRP was trading at $0.51, down 0.4% and 9.3% in the last 24 hours and seven days, respectively, according to data from Coingecko.

XRP Faces Critical $0.51 Threshold

The $0.51 threshold is one of the most important price zones for XRP because a retreat from this level could push the token below the psychological $0.50 level.

Ripple currently trading at $0.51 on the daily chart: TradingView.com

Despite the varied predictions, one consensus emerges: the short-term outlook for XRP appears bearish. With analysts anticipating further declines if crucial support levels are not held, investors should brace for potential volatility in the immediate future.

However, a closer look reveals glimmers of potential hope. Both XRP Shark and JD anticipate a future rebound for the token, albeit at different price points. This suggests that while the near-term may be turbulent, the longer-term prospects for XRP may not be devoid of promise.

Featured image from Pixabay, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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