The price of major cryptocurrency XRP is currently testing a significant support level, and failure to hold this level could spark a major sell-off, according to technical analyst Ali.
Testing Crucial Support
Ali notes that XRP is currently grappling to maintain support at the $0.55 level. This price area corresponds to an important upward-sloping trendline support that XRP has bounced off multiple times in the past.
However, if the $0.55 zone is unable to hold as support this time around, Ali believes XRP could be in for a steep decline.
Potential 40% Selloff
Specifically, Ali warns that a decisive break below $0.55 could open the door for a sell-off scenario that sends XRP plummeting towards the $0.34 level. This would represent a decline of approximately 40% from current prices.
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Show more +So in summary, XRP bulls are hoping the crucial long-term support around $0.55 manages to hold firm and prevent a major technical breakdown. Otherwise, Ali and likely other analysts see potential for a 40% drop if that area gives way. Traders may want to watch for a daily close below $0.55 before bracing for further downside.
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