Analyst Says There’s No Reason to Fear Over XRP as All Structures Remain Intact

A prominent market technician has dismissed any concerns regarding the recent XRP price action, insisting that all structures remain in place.

This commentary from Mr. Xoom, a well-known chartist, comes as XRP struggles to hold its own amid current market uncertainties. Notably, when the broader market embarked on a rebound campaign a week ago, XRP failed to match the momentum, unable to decisively overcome the $3 psychological mark. 

Now, the broader market’s rebound push has lost steam, and XRP has joined the ensuing retracement, falling to $2.84 at press time. With the recent setback, investors have been on edge. Notably, Santiment also recently found that XRP is currently facing its worst retail sentiment in six months.

- Advertisement -

All Structures Remain in Place for XRP

However, market analysts like Mr. Xoom, who have seen some promise on XRP charts, believe the concerns are unwarranted. In his latest commentary, Xoom noted that he doesn’t seem to understand the reason behind the latest bearish sentiments from retail traders. 

According to him, all the necessary structures remain in place for XRP, and the altcoin is only just consolidating sideways for the time being. Mr. Xoom’s comments suggest that XRP remains in a favorable position despite the ongoing price struggles, and the conditions for an imminent rally have not changed.

To prove his point, Mr. Xoom shared a price chart showing three important levels on the daily timeline. He marked each of these levels with a narrow rectangle, with two of the rectangles currently acting as resistance points while the third acts as support.

For context, the first resistance point sits around the $3 to $3.12 range, representing the initial roadblock XRP would face once it initiates a comeback against the bears. Meanwhile, the second resistance point lies around $3.52 to $3.62, aligning with the July peak of $3.66. This is the final roadblock to an XRP push to new highs.

XRP Holding Firm Above Support

On the other hand, the initial support region rests on the $2.7 to $2.72 range, representing the first area that could act as a hedge against steeper declines. Moreover, XRP has also formed a descending triangle on the daily chart, with the initial support box acting as the base. 

With XRP currently trading for $2.84, it remains within the triangle and well above the support region. As a result of this, Mr. Xoom maintains his optimism, confirming that “all structures are still in place.” XRP would only turn bearish when it drops below the triangle support around $2.7 and closes decisively below this level. Until then, it is merely consolidating before the next breakout.

Meanwhile, besides Mr. Xoom, other market commentators have insisted that there is no reason to panic. For instance, amid the recent BNB pump that allowed it to surpass XRP in market rankings, Zach Rector has dismissed concerns from retail investors, showing that XRP still leads with 488% gains since the U.S. elections despite the current struggles.