While some trust Ripple might head towards high regions, others expect an imminent price drop.
Ripple (XRP) saw significant price movements within a previous couple of weeks, with the remittance crypto touching new three-month peaks of $0.91 on 28 March. Nevertheless, the token has since witnessed slowdown signals in momentum, its price plunging beneath the $0.84 level many times within the previous week.
Some market analysts attributed the pullback in XRP to surged selling momentum from large holders hunting profit-taking following the 44% surge from 24 February to 28 March.
Others speculate that renewed regulatory concerns might be weighing on XRP sentiment. Despite the case, the remittance token seems to settle into a subdued trading range after impressive surges.
A Steep Decline or another Upswing?
The downward move from $0.91 saw Ripple falling beneath the $0.82 value area. However, the fall did not surprise many, as the token needed a breather following the massive upsurge.
Moreover, Bitcoin’s correlation contributed to the token’s latest reactions. While the correlation doesn’t always hold accurate, it’s generally true and can be the market sentiment indicator.
Meanwhile, a fascinating development to consider as the XRP price hovers at the $0.85 level is how the remittance token reacts after rejection in this area and declines further. If such a scenario emerges, enthusiasts will watch the $0.80 foothold. Stabilizing beyond this support is critical to avoid price dips towards $0.75.
A downside move that flips these resistance zones into a support barrier might open the gates for a bearish crash to range between $0.70 and $0.65. Thus, a move beneath $0.80 and failure to climb past the area will ruin the bullish narrative for XRP.
On the other side, XRP bulls should ensure an uptrend from current price levels and close beyond $0.90 to authorize a new uptrend. A rally will attract bulls as surged money flows would mean a persistent rally. Meanwhile, enthusiasm by buyers will push the alt to hit and potentially overcome the barrier at the $1.00 psychological zone.
XRP changed hands beyond $0.82, following a 2.34% drop over the past day. The remittance token stays nearly 5% down on YTD. Moreover, its $39 billion market capitalization reflects a 25% loss within the past year.