Earlier this month, Ripple unlocked 1 billion XRP at its escrow wallet, per AZCoin News. Ripple’s unlocking and selling of XRP has always been a controversial topic as the XRP community believes that Ripple’s actions are curbing the token’s potential increase.
Since the beginning of December, XRP price has been trading in a tight range of $ 0.21 – $ 0.23. However, some traders are pointing out some signs that XRP is likely to rise higher.
Source: Trading View
Trader Eric Choe said Ripple’s XRP could revive its momentum if it breaks above $ 0.26. This level is considered a key level for No.3 to move towards a larger price increase.
Bearish scenario for #XRP – we could potentially see $0.17 – $0.18 if we continue getting weak reactions off of these support zones.
For bulls, the level to gain in my opinion is back above $0.26 for me to lean bullish again on a medium time-frame. pic.twitter.com/jBaOEOAzUn
— Eric Choe [Mr. Swing Trade] (@CryptoChoe) December 10, 2019
Crypt0mer has the same bullish view. The trader illustrates in the chart that the cryptocurrency has broken out of the month-long descending channel as Bitcoin has moved higher, implying further price increases. An ascending channel seen earlier this year saw token price collapse after the asset broke below that level.
That’s not all, the Klinger indicator is about to enter the positive territory in the next four weeks while the RSI is approaching an important territory. If the bulls attempt to push the cryptocurrency a bit higher, surpassing $ 0.225 (the price at the time of writing), the uptrend may begin.
Buying interest kicked in around $0.21, a bounce to $0.25 seams reasonable, if $XRP catches on fire maybe a re-test of $0.285 since it gapped down hard.
Here is the 12hr VPVR, and HTF fib retracement levels on the log scale. I’m trading the bounce rn, then I’ll re-evaluate. pic.twitter.com/SdmdJT6mq6
— CƦYP₮ΘɱΞƦ (@Crypt0mer) December 8, 2019
But the bearish sentiment still exists when XRP has fallen below the critical support of $ 0.25, which is considered an important support level on November 21. Since then, token has been unable to recover back above this level.
Ripple’s token continued to bleed in November and eventually dropped to $ 0.206, hitting a two-year low. This is the time when XRP is the cheapest after the bull run in December 2017.
However, there is a high level of probability that XRP could drop to as low as $ 0.17. According to Choe, this scenario will become a reality if the property continues to receive a “weak response”.
Trader Magic is also discounting on XRP. He noted that XRP is in the middle of a protracted falling wedge pattern (often considered a long-term upward but short-term downward). The wedge pattern predicts that XRP is likely to drop 20% to $ 0.17 in the coming weeks.
Read more:
- Banking Giant Santander To Expand Ripple Payment Platform In Six New Corridors, Not Use XRP
- Ripple Has Sold 5.1 Billion XRP From Ripple’s Escrow Wallets Since 2017