XRP has been struggling to maintain the upwards momentum that it incurred just over a week ago.
The cryptocurrency met insurmountable resistance within the lower-$0.30 region that slowed its ascent, subsequently causing it to break back into the upper-$0.20 region.
From this point on, it has been stuck in a firm consolidation phase, with its price action moving in close tandem to that of Bitcoin and Ethereum.
This has exposed it to some heightened turbulence in recent weeks, but it has continued maintaining some stability within the upper-$0.20 region.
Analysts are now noting that the token may be well-positioned to see significantly further upside in the long-term, but its short-term situation remains somewhat precarious.
One trader explained that the recent push past $0.30 marked a “false move” that is likely to result in a further drawback.
He believes that this could lead it as low as $0.25 in the near-term.
XRP Struggles to Gain Momentum as Analysts Eye Short-Term Downside
At the time of writing, XRP is struggling to garner any momentum as its price hovers below its key resistance at $0.30.
This is around the price at which it has been trading throughout the past week, although it did attempt to break above $0.30 this past weekend.
This attempt allowed to token to rally as high as $0.31 before it lost its momentum and faced a massive influx of selling pressure.
From this point, its price slid down to lows of $0.27. It has been consolidating ever since.
Analysts are now noting that this price action may have marked a “false move” that suggests further downside is imminent in the near-term.
One trader is now setting his sights on $0.25.
“XRP (USDT) update – breakout was a “False move”, 25 cents seems reasonable, lower range of high wave spinning top,” he said while pointing to the chart seen below.
Image Courtesy of Cheds. Chart via TradingView.
Why the Token’s Macro Technical Outlook Remains Bright
Despite showing signs of short-term weakness, XRP’s macro technical outlook is still bright.
As reported by NewsBTC yesterday, one analyst believes that the cryptocurrency is poised to explode towards $0.93 in the coming weeks due to a plethora of different factors. He explained:
“XRP Thread: TLDR: It’s going to .93c most likely… Breaking a 950 day down trend. Price is where the 17′ bull rally took off from and just reclaimed a major historical support level all with confluence of the 200D EMA on the BTC pair. The volume is also suggesting a reversal. There is a higher low on the chart finally.”
Image Courtesy of Pentoshi. Chart via TradingView.
If XRP does face heightened selling pressure that leads it to plunge towards $0.25, a strong bounce here could mark the start of its next leg higher.
Featured image from Unsplash. Charts from TradingView.
from NewsBTC https://www.newsbtc.com/2020/08/12/xrps-false-move-could-lead-it-to-0-25-despite-macro-strength/?utm_source=rss&utm_medium=rss&utm_campaign=xrps-false-move-could-lead-it-to-0-25-despite-macro-strength
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