XRP is once again seeing a severe underperformance of Bitcoin and many of its other peers
The cryptocurrency has failed to post any notable rally today despite that seen by Bitcoin and the aggregated crypto market
Analysts are now noting that it could be well-positioned to see some major downside in the weeks ahead as the effects of its year-long breakdown begin to reach a boiling point
XRP has been hovering around the $0.20 for the past several days, and Bitcoin’s massive $1,000 surge to highs of $10,000 earlier today was not enough to help the embattled token decisively break above this level.
It now appears that the cryptocurrency could be well-positioned to see a major downswing in the days ahead.
One respected analyst is noting that the crypto recently broke below a year-long trading range that had previously held strong, potentially leading it to decline 30% against its BTC trading pair.
Other analysts agree with this assessment, as one recently noted that he is closely watching for a sharp decline down to $0.12.
XRP Struggles to Gain Momentum as It Underperforms Aggregated Market
At the time of writing, XRP is trading up 1% at its current price of $0.20.
It is important to note that these tempered gains seen against its USD trading pair are being overshadowed by the 5% loss it has incurred against Bitcoin today.
If the token is able to flip $0.20 as support and gain some greater momentum, its first heavy resistance level will likely exist at $0.22.
This happened to be the level at which it began finding some significant support before the capitulatory decline last weekend that led it down to lows of $0.19.
Mohit Sorout – a founding partner at Bitazu Capital – spoke about XRP in a recent tweet, explaining that it recently broke below a year-long trading range.
This technical development has led him to flip short from 0.000022 BTC, with a roughly 30% target of 0.000015 BTC by June.
“XRP broke down from a year long range. Short from 2200. Wouldn’t be surprised to see this at 1500 before June ends,” he explained.
Image Courtesy of Mohit Sorout
This Trader Thinks the Crypto Could Decline as Far as $0.125
Sorout isn’t the only one who is targeting some immense downside for XRP.
In a recent blog post, respected trader Nik Patel explained that he is watching for a swift move to below $0.175, with this opening the gates for a decline to $0.125.
“This break and turn occurred from an important area also: the 200-day moving average. If we start to see price reject from a retest of the underside of this area, I am expecting a swift move below $0.175 and then a retest of the range low at $0.125.”
Image Courtesy of Nik Patel
Featured image from Unplash.
Source: Bitcoinist News