XRP has seen some intense selling pressure throughout the past few days, with the ongoing downtrend seen by Bitcoin and the aggregated cryptocurrency market putting it at risk of seeing significantly further losses in the days and weeks ahead.
One prominent analyst is now explaining that he believes the crypto is on the verge of setting fresh multi-year lows due to a recent break below a key support level that had previously been supporting its price.
If bulls are unable to invalidate the bearishness sparked by this recent breakdown, XRP could soon plummet towards $0.15 in the days and weeks ahead.
XRP Loses Momentum Amidst Market-Wide Bearishness
At the time of writing, XRP is trading down over 2% at its current price of $0.20, which appears to be a slight support level for the cryptocurrency in the near-term.
The embattled token has – like many other major cryptocurrencies – been caught within an intense downtrend over the past several days and weeks, with it rallying to highs of $0.33 before bulls lost their strength and the crypto began reeling lower.
This multi-week selloff reached a boiling point when the cryptocurrency fell to lows of $0.20 a couple of days ago, and it has been trading sideways at this level in the time since.
This bearishness has come about against a backdrop of weakness within the crypto markets, with Bitcoin currently hovering around its critical support level at $7,700, while Ethereum and other major altcoins all break below key support levels.
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Magic – a popular cryptocurrency analyst on Twitter and TradingView – explained in a recent post that he believes XRP’s downtrend is just getting started, as it recently broke down below the neckline of a bear-favoring head and shoulders pattern.
“XRP has clearly broken down from a head and shoulders pattern, as price failed miserably to recover above the 61.8% Fibonacci retracement level,” he explained.
Image Courtesy of Magic
He further goes on to explain that he is now targeting a movement to fresh post-2017 lows of $0.15 for the embattled cryptocurrency due to the strength of its ongoing downtrend.
“Based on this price action, it’s clear that the downtrend remains intact. Therefore, the price target remains at the bottom of the falling blue wedge, in the 0.15-0.16 range,” he bearishly noted.
Unless the aggregated market begins recovering in the days and weeks ahead, it is highly probable that XRP will continue underperforming Bitcoin, thus opening the gates for further downside.
Featured image from Shutterstock.