XRP Price Testing Crucial Support Amid Ongoing Selloff

25 January 2024

in XRP

Reading Time: 2 mins read

struggles as bears maintain control during a weeks-long selloff, testing crucial support.
Analysts debate whether the current level signals accumulation or false hope.
A breakdown may lead to a 12% drop to $0.44, but regaining $0.55 could signal bearish exhaustion and the potential for a relief rally.

XRP bears have forced the token’s price into a precarious position following a punishing multi-week selloff that threatens to turn ugly. This week’s failed rally attempt marked the latest display of selling momentum, overwhelming struggling buyers near former support.

The breakdown places XRP price action at the lower band of its multi-month descending channel amid warning signs of trend exhaustion on momentum oscillators. Some analysts believe current levels represent an accumulation zone and the prelude to an impending trend reversal.

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However, more voice concerns over false bottoms and the lack of decisive signals suggest that exhausted sellers will finally let up. At around $0.51 currently, XRP risks breaching formidable channel support near $0.50, which could quicken its sharp decline.

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XRP slump below $0.50 could trigger a bloodbath

With bearish headwinds persisting over longer timeframes, many experts urge caution before calling an end to the brutal correction just yet. Sustained moves below channel support likely open floodgates toward the mid-$0.40s.

On the flip side, emboldened bulls could quickly re-enter at lower levels and spark an aggressive relief rally. Reclaiming the former foothold at $0.55 is viewed as the minimum threshold to suggest near-term bearish exhaustion at work.

$XRP BULLISH GARTLEY w/ TYPE 2 RETURN AT SUPPORT!THIS IS WHERE WE HOLD THE BEARS!THIS IS WHERE WE FIGHT; THIS IS WHERE WE PUMP!#XRP pic.twitter.com/DCwfYdbL1k

— XRP whale (@realXRPwhale) January 25, 2024

From there, a more significant 23% rebound toward the channel’s midpoint and falling resistance become theoretically achievable. Some even suggest current prices complete a bullish chart pattern that precedes sharp trend reversals historically.

While optimists cling to signs of waning bear momentum, the tide has yet to convincingly shift in XRP’s favor. At these depths, volatility could spike rapidly, with fragile sentiment driving overshoot moves. But bears currently dictate terms until buyers step up.

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