XRP is often haunted by whale movements, such as the recent 440 million XRP whale and Ripple’s monthly sell-offs. Moreover, court developments on the SEC vs. Ripple case directly impact the token and investors’ confidence.
In the meantime, the cryptocurrency trading expert Ali Martinez warned of a possible sell-off scenario brewing for XRP. Martinez posted a technical analysis on X (formerly Twitter) on January 18, showing a multi-year trend threatened to break down.
“XRP is currently grappling to maintain its footing at the crucial $0.55 support level. Should this support fail to hold, be prepared for a possible sell-off scenario that could see XRP descending toward $0.34!”— Ali Martinez (@ali_charts)
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XRP price analysis and possible bearish breakout
Notably, the parallel channel spotted by Ali Martinez dates from 2022, and XRP has so far respected its range. XRP traded as high as $0.92 in July 2023. Meanwhile, reaching its lowest price within the channel between December 2022 and January 2023, at around $0,33.
As of writing, XRP battles at $0.55, which tests the trend support line. Breaking out of this range would put the token at great peril of re-visiting the multi-year lows.
However, traders must be aware of possible fake breakouts, which could induce opening short positions just to liquidate them right after in a short squeeze. Despite that, this is a relevant moment for Ripple’s token, which could turn bearish after over a year of a bull run.
Therefore, XRP holders would like to see a quick bounce from these prices in the next few days. Essentially, consolidating at the range’s lows would favor a future bearish breakout as a show of weakness.
In the case of a bounce upwards, XRP will need to test the resistance at the range’s medium before continuing a bull rally to the one-dollar mark.
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