After a few months of ups and downs, the XRP price had fallen below $2 this month for the first time in seven months, breaking down toward its yearly support of $1.79. While there has been some recovery recently, the momentum remains low, and the chances of a sustained recovery decline with each new dip. As the altcoin continues to struggle, a market analyst has outlined the two major directions that the price could go in, given the bull and bear scenarios.
The Bull Case For XRP
For the XRP price to continue to rise, there would need to be some major momentum shift from here. For one, the price will first have to break the resistance that lies at $2.12, and then forge forward to test further resistance at $2.18. In the event that the altcoin does break these resistances with momentum, then crypto analyst Melikatrader believes that it could resume its uptrend.
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For these to happen, however, there would need to be a number of developments for the altcoin. The crypto analyst outlines three major things that need to happen for the cryptocurrency to begin another surge to reclaim the $2.35-$2.45 level.
First of these is that buyers would need to regain control of the market. Over the last two months, it has been a seller’s market, with each pump being sold off harder than the last. Therefore, the only way for a major recovery would be for buyers to start being the majority again.
Next on the list is the rest of the resistances to confirm support. Once the resistances mentioned above are broken and turned into support, then the next phase can begin. Last but not least is for the XRP price to break out of the descending trendline, with the target lying at $2.35-$2.45. Only then will the pump continue.
How The Bears Can Take Control
Just like the bulls, the XRP bears are still very much active in the market and could reclaim control of the altcoin. The first thing that the crypto analyst points out is that if the price is rejected from the S&D zone, failing to reclaim $2.12-$2.18, which means the resistance holds, then the price is likely to fall.
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In the event of this, it would mean a number of things are happening; the first of which is that the momentum is moving toward a decline as sellers become the majority. Once the suppression begins, then it is likely that the price breaks below $2 again and dumps back to retest its recent lows of $1.90-$1.92. This, the analyst explains, “could lead to new cycle weakness.”
Featured image from Dall.E, chart from TradingView.com