XRP has been on a roller coaster for the past few days and weeks, with the cryptocurrency randomly exiting a multi-year trading channel earlier this week allowing its price to soar as high as $ 0.90 on some exchanges.
The sales pressure here was significant, with many long-term holders using the pump as an exit opportunity.
It has since struggled to gain momentum, which could be a sign that the downside is imminent in the days and weeks to come.
The observed decline in the aggregate market could also hinder its growth, as BTC and ETH both plummeted and caused major losses for most altcoins.
A trader is now noticing that there are some signs that XRP could form a long-term bottom. It indicates that it closes above a key high time frame level while potentially locking a bullish divergence in the short term.
For these potentially bullish factors to cause the cryptocurrency to see a significant rally, the bulls need to hold it above a crucial level in the days to come.
XRP struggles to gain momentum as the market turns to the downside
At the time of writing, XRP is trading down nearly 30% at its current price of $ 0.46. This marks a huge retracement from its recent highs of nearly $ 0.90 set earlier this week at the height of its parabolic uptrend.
Where the entire medium-term market performance may largely hinge on Bitcoin’s trends thereafter, as the selling pressure it faced led to it falling as low as $ 16,200 before seeing a strong rebound.
XRP appears to be finding support for its current price levels. A continuous period of negotiation here could allow it to rise.
This is why Crypto is showing signs of strength
A trader explained in a recent tweet that XRP is showing some signs of technical strength.
He notes that the intense buying pressure that has been observed around its current price levels could confirm it as a support region for a high time frame.
“XRP: Do you want me to close this green time, lock the div and stay above the key HTF level?”
Image Courtesy of Smokey. Source: XRPUSD on TradingView.
XRP is likely to trade similarly to other altcoins in the days and weeks to come, making the strength seen on BTC and ETH key to the cryptocurrency’s move.
Featured image from Unsplash. Charts from TradingView.