Ripple (XRP) Struggles Amid Crypto Market Rally: Analysts Eye Key Resistance Levels for Potential Trend Reversal
The XRP token has struggled thus far in 2024 compared to other top altcoins like Ethereum, Avalanche, and Solana. While the broader crypto market is enjoying a renewed bull run, XRP hasn’t yet exhibited similar notable gains.
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Analyst says $0.6649 is the key
In a tweet yesterday, popular pseudonymous crypto trader Dark Defender pointed out that XRP had three consecutive 4-hour candles close above the key $0.5286 resistance level.
He goes on to state that the daily candle will close in a matter of hours, and it is important for XRP to break through the next resistance level at $0.60 in the coming days.
Dark Defender identifies the major resistance level at $0.6649, which corresponds to the orange diagonal resistance line on his chart. Breaking above this level could signal a major trend change for the battered altcoin.
Fellow trader Cryptoes echoes this short-term bullish outlook in his latest tweet, noting that XRP appears to be playing out a textbook falling wedge pattern with a nice bounce from the daily 21-day moving average. He identifies the next resistance level to watch at $0.54, just above the current price. A decisive break and close above this would validate the falling wedge breakout.
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Show more +Analyst breaks down XRP bearish sentiment
On the other side of the aisle, analyst Nick calls out the extreme bearish sentiment that has been swirling around XRP, with many labeling it a “dead scamcoin” amidst the recent negativity.
As Nick explains, “the bottom won’t feel like the bottom” because the prevailing social sentiment tends to reach peak pessimism right before a trend reversal. He cites examples of peak fear playing out in both the recent FTX collapse and the 2018 crypto winter preceding the monster 2021 bull run. He also added that when it comes to XRP, it will never be an easy hold.
Nick acknowledges the extreme selling pressure on the XRP/BTC pair, which he shows in a chart to illustrate what he calls “free fall.” However, he remains steadfast in his long-term conviction on XRP, blaming the lack of upside partly on ongoing Bitcoin consolidation prior to making new all-time highs.
Once Bitcoin tops out and starts losing dominance to altcoins, he expects coins like XRP to “have their time in the sun.” For now, he reminds the XRP faithful to tune out the rampant fear and stay mentally strong in the face of temporary price adversity.
“At the end of the day XRP will have it’s time in the sun. Until then avoid falling into the trap of listening to illogical nonsense that’s fueled by price action expectations falling through,” Nick stated.
So while social sentiment may have reached a peak, the technicals show a viable path for XRP to break key resistance levels in the near term. The coming days and weeks will determine whether a trend reversal and vindication may arrive for the controversial altcoin.
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