XRP has broken below multiple support levels as it plummets by over 4% to the pivotal price threshold at $0.51, with market participants reflecting on its next direction from here.
When Bitcoin (BTC) led the broader crypto market into a mild recovery on Jan. 29, XRP rode on this resurgence, rallying 4% from a low of $0.5193 to retest the $0.5400 price threshold within eight hours.
However, the asset faced intense resistance at $0.5400, leading to a momentary retracement. XRP hedged against any drops below $0.53 despite the pressure from the bears. This clash between the bulls and the bears at $0.53 resulted in range-bound price movements.
Nonetheless, the bears stole the spotlight yesterday, as the crypto market exhibited weakness, with Bitcoin struggling to retain $43,000. XRP eventually gave up the $0.53 support level, with hopes of retesting the lows at $0.52 for a potential rebound.
Meanwhile, the bears had other plans, exerting enough pressure to break below the Fibonacci 0.236 level at $0.5261. Following a collapse to $0.5229, XRP mounted a defense, which led to another round of range-bound movements.
The historical significance of the $0.51 price zone has proven to be a robust protective barrier for XRP, effectively thwarting bearish pressures during past market downturns.
Speculation among market participants and analysts revolves around whether the crypto asset will successfully maintain this critical level as it awaits a resurgence of the bulls or succumb to more pronounced declines in the current market scenario.
What Lies Ahead for XRP?
In a previous analysis on Jan. 23, notable chartist ElmoX projected an incoming dump in XRP’s price. Nonetheless, he stressed that the token needs to hold above $0.40 during this slump, as giving up this level would result in a more substantial collapse to the $0.25 price territory.
Despite the expectation of a massive correction, ElmoX maintained its bullish projection for XRP, arguing that the crypto asset would rally to new all-time highs at $5 or $7. However, he asserted that these price levels would not materialize until the next year or two.
ElmoX charged investors to take advantage of further drops as an opportunity to augment their XRP bags. Several industry commentators share this sentiment, citing the prevailing bearish sentiment surrounding XRP amid the recent collapse.
Bobby A, a market analyst, called attention to this bearish sentiment in a post on X today. He emphasized that a lesson he has learned in the crypto scene is to “go hard in the paint” on any asset that everyone seems to be bearish or frustrated with.
The negative sentiment surrounding #XRP is palpable. One thing I’ve learned over many years in this game is when everyone is scared, bearish, and frustrated you go hard in the paint. When everyone is happy and cheerful you sell. Do the math on #XRP at the moment.
Ignore the…
— Bobby A (@Bobby_1111888) January 31, 2024
In addition, Tom Crown, crypto influencer and founder of Crown Analysis, disclosed that he would be procuring some XRP tokens for the first time since 2017. According to Crown, this newfound attraction has been triggered by several bearish posts around XRP amid the drop.
Meanwhile, XRP currently trades for $0.5110, with a 4.68% drop over the past 24 hours and a 16% slump this month. Volume has spiked 94% in 24 hours to $1,768,385,995 as selloffs pick up. In a fall below $0.51, the token’s next defense lines currently sit at $0.5042 and $0.4959.
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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