XRP has seen mixed pricing action in recent days. It recently lost the key support it set at $ 0.20, then fell sharply to lows of less than $ 0.19.
Buyers of the cryptocurrency have fiercely defended themselves against a significant short-term slowdown, and it now appears that they are trying to regain their position above $ 0.20.
An analyst notes that its medium-term outlook remains fairly bleak.
He explains that the recent decline has caused him to break his market structure, opening the doors to a brutal and brutal drop from his low end to $ 0.125.
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XRP enters consolidation phase as buyers and sellers find themselves at an impasse
As of this writing, XRP is trading at just under 2% at its current price of $ 0.198.
Crypto is currently trying to claim its previous support at $ 0.20, and this increase is happening because Bitcoin and most other alternative currencies have also risen by an inch.
It is important to note that the token appears to be trapped in a consolidation period as it failed to gain decisive momentum back and forth after its last wholesale sale.
This drop took it from highs of almost $ 0.23 to lows of less than $ 0.19. Since then, it has operated laterally around its current price level.
A highly respected analyst and trader now notes that he predicts that the third largest cryptocurrency will see a huge drop in the short term.
the Explain That this technical weakness is based on the recent breakout of crypto below its 200-day moving average.
"From XRP / USD, I am particularly interested in the highlighted area from which the market structure has recently deteriorated and has become bearish. This outage and change also happened in one important area: the 200-day moving average, "he said.
Image reproduced with the kind permission of Nik Patel
This level is a critical moving average that defines the trend and has historically offered investors a significant perspective on the direction in which an asset will evolve over a medium term.
Here's how weak this technical weakness could be.
As for what this altered market structure could mean for XRP price action in the short term, the same analyst notes that the outlook is pretty dire.
He explains that he expects a quick move below $ 0.175, with this breakout opening the doors for a capitulatory move that sends it to its low of $ 0.125.
"If we start to see the rejection of the price of a new test from the bottom of this area, I expect a rapid drop below $ 0.175, then a new test of the low range at 0.125 $. "
This potential path could be accelerated if Bitcoin sees a significant decrease in the short term.
Featured image from Unplash.