XRP has retested the critical support level of $0.47 at a multi-month descending channel, looking to leverage the latest development for the next attempt toward recovery.
The current bearish market condition has dramatically affected XRP, exerting selling pressure on investors for over a month. XRP is now down by over 48% from its yearly high of $0.9380, having retraced all the gains from July 13.
XRP’s Retracement Journey
The asset’s retracement journey from the $0.93 high has been wrought with declines, recoveries, and consolidation. After observing a collapse to the $0.62 region in early August, XRP hedged against further drops, displaying resilience against the bears. This led to consolidation within the $0.62 zone for over a week.
However, XRP gave in to the bearish pressure on Aug. 15, crashing to a low of $0.4309. Following this drop, XRP saw a comeback that took it to the $0.50 zone and has continued to battle the bears in this area, forming a descending trendline.
Nonetheless, XRP breached this trendline on Sept. 29 when it rallied to a high of $0.5491. The asset secured a position above the trendline for two weeks. The rapid surge on Oct. 3 helped it solidify its spot above the downtrend.
XRP Retests Crucial Support
However, the recent collapse in the broader crypto market has pumped another episode of bearishness into the XRP market. XRP has continued to decline since Oct. 7, relinquishing the $0.52, $0.51, $0.50, and $0.49 psychological support levels to the bears.
Amid the latest drop, XRP retested the downward trendline, touching the crucial support at $0.47. Market watchers expect this retest to serve as a precursor for another recovery attempt from XRP.
The retest signals that the current market trend might be gradually turning from bearish to bullish. If XRP holds above the trendline, it indicates that the asset has successfully transformed it into support and could leverage this support for a recovery attempt.
Hopes of a Recovery
XRP needs to hold above the $0.4782 threshold to retain hopes of a recovery. A drop below this level would take the asset back underneath the trendline. Should this occur, XRP’s next crucial support sits at $0.4590. The asset could leverage this to prevent any drops to the Aug. 17 low of $0.4309.
XRP is trading for $0.4813 as of press time. Crypto analyst EGRAG believes its current trading range is one of the most significant since May 2017. The analyst noted that the XRP has retained its 2020 support. According to EGRAG, the longer XRP takes to hit preset targets, the closer it is to a rally.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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