XRP boomed following Ripple Labs’ partial victory over the SEC last month. However, the momentum has slowed down in recent weeks, with the project facing significant resistance and has begun to trend downwards.
This begs the question of whether XRP is moving to its previous range or if this is a mere pullback on an uptrend. Meanwhile, some traders are flocking to the new XRP20 token for a more accessible Ethereum-based version of XRP with high upside potential.
XRP Faces 3rd Bearish Week After Pumping
At the peak of its pump after Ripple Labs’ partial victory over the SEC, XRP rejected at the $0.95 mark. This is the same zone at the final in March 2022 amid its bearish downtrend.
With that in mind, it may seem that XRP has peaked and is now destined to retest its previous resistance. However, there are some other factors to consider first.
The XRP price chart below shows the current Stochastic RSI level and the Bollinger Bands indicator.
The Stochastic RSI currently displays XRP at the 80 level, considered overbought. This signals a pullback is likely to follow as the market buyers are exhausted.
Furthermore, XRP is trading at the top of the expanding Bollinger Bands. Not only is this a sign that a pullback could occur, but the expansion represents higher volatility and could mean the pullback will be severe.
Crypto YouTuber Crypto Clinix recently called for XRP to return to its $0.66 support level.
The trader predicted the price would bounce following reaching the support but acknowledges that the outlook for XRP is currently bearish.
Another prominent crypto trader, TraderSZ, made a call in his Telegram group in July for XRP to drop to $0.6. Since the call, XRP’s price has dumped from $0.77 to $0.67.
A YouTube analyst who goes by More Crypto Online recently highlighted that XRP’s price structure shows significant bearish momentum.
In a recent video, the YouTuber discussed XRP’s recent sell-off is yet to show signs of a reversal. According to the video, a break below $0.66 would be highly bearish and open the door to a move to $0.56.
Traders Back New XRP20 Token as a Promising Alternative to XRP
XRP20 is a new Ethereum-based alternative to XRP. In the face of XRP’s recent difficulties, many traders have opted for the new alternative thanks to its low market cap and distinct advantages over the original XRP coin.
According to analyst Jacob Bury, XRP20 has massive potential to pump, capitalising on XRP’s current situation.
The project is currently undergoing a token presale at $0.000092 – 30x cheaper than XRP’s all-time low of $0.0028. However, its low price is only one of its draws.
XRP20 boasts a “Stake-to-Earn” mechanism, enabling holders to earn passive rewards without lifting a finger. It also features a deflationary mechanism that burns 0.1% of every XRP20 buy and sell to boost its price over time.
On top of that, it has enjoyed substantial marketing success, receiving coverage from numerous top media outlets leading to its presale raising $300K in just two days.
The original XRP project has been criticised for its centralisation and OTC sales of XRP from its founders. On the other hand, XRP20 is 100% community-owned, with 40% of tokens available at presale, 40% allocated to staking rewards, 10% for DEX liquidity, and 10% will be burned.