XRP has been hit hard by the recent market-wide selloff, with the cryptocurrency’s price erasing the vast majority of the gains that it has been able to gain over the past several months.
These gains were hard-fought by the cryptocurrency’s investors and came about in the form of a slow grind higher.
The resistance found throughout the lower-$0.30 region proved to be insurmountable, however, and the cryptocurrency was forced into a prolonged consolidation phase within the upper-$0.20 region.
This trading range was broken below yesterday, as XRP was unable to avoid the headwinds that were created by the massive inflows of selling pressure that dragged Bitcoin to the sub-$10,000 region for a brief moment.
This BTC movement sent shockwaves throughout the entire market, causing major and smaller altcoins alike to post massive losses.
As for where it may trend in the near-term, analysts are noting that the support it has reached is quite significant and may allow it to rally higher in the days and weeks ahead.
XRP Plunges Alongside Aggregated Crypto Market
At the time of writing, XRP is trading up just over 1% at its current price of $0.24, marking a massive rise from its recent lows of just over $0.23 that were set for a brief instance this morning.
The cryptocurrency’s current weakness comes as Bitcoin struggles to maintain its position within the $10,000 region, as bears conducted another selloff this morning that sent it reeling down to lows of $9,900 before it saw a sharp rebound.
XRP’s descent fist kicked off a few days ago when its price ran to highs of $0.30, at which point it began reeling lower and slowly broke below all the support it had throughout the upper-$0.20 region.
Analyst: The Token is Likely to Post a Sharp Rebound as It Reaches Crucial Support
While speaking about XRP’s near-term outlook, one analyst explained that he is expecting it to see a sharp rebound in the near-term due to the strength of the resistance that lies just below its current price level.
“XRP: If you’re bullish XRP, this is probably one of the better places to be so. 3 big tests of resistances, another test would almost certainly break out. Chilling right at support,” he explained.
Image Courtesy of DonAlt. Chart via TradingView.
As seen in the above chart, this support exists between $0.22 and $0.24, which means that bears are now moving to invalidate it.
If broken below, it would suggest that a move to its next key support at $0.19 is imminent.
Featured image from Shutterstock. Charts from TradingView.