XRP Price Alert: Critical Level to Watch or Face a Drop to $0.9!

The XRP price is currently at a crucial juncture, facing a potential decline to $0.90 if key support levels fail to hold. A prominent crypto analyst, ‘Guy on the Earth,’ has identified a critical support zone at $1.95 that will determine XRP’s near-term trajectory. With market volatility increasing and sentiment shifting, understanding these levels is paramount for both short-term traders and long-term XRP holders. This article delves into the analysis, potential scenarios, and strategies for navigating the current XRP market conditions.

XRP Price Faces Potential Decline to $0.90 if Support Breaks

According to ‘Guy on the Earth’ on X (formerly Twitter), XRP has recently closed below the $1.95 monthly support zone for the first time in 13 months. This breakdown signals increasing downside risk and carries significant technical implications. The analyst warns that a failure to quickly reclaim this level could trigger a substantial price correction.

Historical Precedent and Technical Analysis

This isn’t the first time XRP has tested the $1.95 support. The analyst points out that a similar event occurred in April during a period of US tariff-related market stress, ultimately leading to a broader crypto market crash, including a significant drop in XRP’s value. If history repeats itself, XRP could experience a similar downturn if the $1.95 support doesn’t hold.

The current breakdown target, according to the analysis, is $0.90 – representing a potential more than 50% crash from current levels around $1.85. For XRP to stabilize, bulls must urgently reclaim and defend the $1.95 level.

Source: Chart from Guy on the Earth on X

Recent attempts by XRP to move back above $1.95 have been met with rejection, resulting in the formation of another lower high and reinforcing the overall bearish trend. If the monthly chart fails to regain the $1.95 support within the next few days, the downward momentum could accelerate.

Trading Strategy: Reducing Exposure and Waiting for Confirmation

For traders concerned about the current market setup, ‘Guy on the Earth’ recommends reducing exposure to XRP and waiting for a confirmed daily close above $1.95 before re-entering the market. This strategy aims to limit potential losses while positioning traders to capitalize on a possible price recovery. Risk management is crucial in this volatile environment.

Potential Accumulation Zones and Bitcoin’s Influence

Looking at the longer term, the analyst has identified several potential accumulation zones should XRP’s price continue to fall. Key levels to watch include:

• $1.61
• $1.42
• $0.90 (the primary breakdown target)
• $0.75 (the initial breakdown area from the previous rally)

Furthermore, ‘Guy on the Earth’ notes that increased selling pressure from Bitcoin (BTC) could exacerbate downside moves for XRP. As XRP often mirrors Bitcoin’s price action, a significant BTC correction could drag XRP lower.

Bullish Recovery Still Possible: Exhaustion of Sellers

Despite the bearish outlook, the analyst emphasizes that the recent price action doesn’t necessarily signal a complete downturn for XRP. He points out that XRP is only $0.04 away from rectangle resistance and that bullish divergence hasn’t yet played out across multiple timeframes.

According to the analysis, sellers are showing signs of exhaustion, suggesting that a recovery and subsequent rally are still possible. However, he cautions that vigilance is necessary given the two consecutive weekly closes below the critical $1.95 support level.

XRP is currently trading at $1.87 on the 1D chart (as of November 21, 2023). Monitoring these levels will be key to understanding the next phase of XRP’s price movement.

XRP trading at $1.87 on the 1D chart | Source: XRPUSDT on Tradingview.com

Understanding Bullish Divergence

Bullish divergence occurs when the price of an asset makes lower lows, but a momentum indicator (like the Relative Strength Index or RSI) makes higher lows. This suggests that the selling momentum is weakening, and a potential price reversal could be on the horizon. The analyst’s observation that bullish divergence hasn’t yet fully played out offers a glimmer of hope for XRP bulls.

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Disclaimer: This article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are inherently risky, and you should always conduct your own research before making any investment decisions.