After a few months of ups and downs, the time has come XRP price had fallen this month below $2 for the first time in seven months, which amounts to an annual support of $1.79. Although there has been some recovery recently, momentum remains low and the likelihood of a sustainable recovery diminishes with each new dip. As the altcoin continues to struggle, one market analyst has outlined the two main directions the price could go given the bull and bear scenarios.
The Bull Case for XRP
For the XRP price to continue rising, there would need to be a major momentum shift from here on out. Firstly, the price will first need to break the resistance located at $2.12 and then move on to test further resistance at $2.18. Should the altcoin break through these resistances with momentum, crypto analyst Melikatrader will be next believes that it could resume its upward trend.
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However, for this to happen, a number of developments must take place for the altcoin. The crypto analyst outlines three key things that need to happen before the cryptocurrency starts a new wave to regain the $2.35-$2.45 level.
First, buyers must regain control of the market. It’s been a seller’s market for the past two months, with each pump selling harder than the last. Therefore, the only way for a major recovery would be for buyers to become the majority again.
Next on the list is the rest of the resistances to confirm support. Once the above resistances are broken and turned into support, the next phase can begin. Last but not least, XRP price will break out of the descending trendline, with a price target of $2.35-$2.45. Only then does the pump continue.
How the bears can take control
Like the bulls, the XRP bears are still very active in the market and could regain control of the altcoin. The first thing the crypto analyst points out is that if the price is rejected from the S&D zone and fails to regain $2.12-$2.18, meaning resistance holds, the price will likely fall.
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In that case it would means that a number of things happen; The first of these is that momentum moves towards a decline as sellers become the majority. Once the suppression begins, it is likely that the price will break back below $2 and fall again to retest the recent lows of $1.90-$1.92. This, the analyst explains, “could lead to new cycle weakness.”
Featured image of Dall.E, chart from TradingView.com