The digital asset sector has certainly been volatile for the past few weeks. Among those most affected is Ripple (XRP), which is nearing a crucial support at $0.48, could a turnaround be possible for the asset? Well, some different perspectives have led to different predictions for the cryptocurrency’s near-term performance.
The asset has faced increasing selling pressure, which has resulted in a bearish outlook for many. Subsequently, the likelihood of continued decline has been predicted by many. However, could the asset be poised to face a reverse upward? Some are holding out hope
Ripple (XRP) Bears Target $0.48 Support
At the start of 2024, the digital asset industry was filled with optimism. Approvals for 11 Spot Bitcoin ETFs were just on the horizon, and many expected it to be an industry-shifting event. However, that proved not to be the case. Now, more than halfway through January, volatility has inundated the market.
Among those most affected is Ripple (XRP), which is set to soon face critical multi-month support at $0.48 amid continuous losses throughout the month. There is the overwhelming perspective that the downward trajectory of the asset should continue, especially due to the overall market conditions that are not conducive to a rapid turnaround in the short term.
XRP is intersective a trendline and static support zone at $0.52. However, the selling pressure has made it likely to continue descending to the lower support. Currently, the asset is trading at $0.53, down more than 3% over the last 24 hours, according to CoinMarketCap.
Still, some are optimistic that this is preceding a reversal upward for the digital asset. Specifically, digital asset analyst Crypto Rover has predicted a “massive breakout” in the next 8-10 months. Subsequently, that prediction is based on a symmetrical triangle that is beginning to form. That pattern started forming in October 2022, showcasing its resilience.
This could point to an impending shift in the price dynamics for the cryptocurrency. However, this had already attempted to take place in both July and November of 2023. Subsequently, both attempts were followed by swift retracements. Only time will tell how XRP responds, but bears currently maintain the brunt of power over its most recent maneuverings.