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XRP has been trading on the downside these past few days on the broad side cryptocurrency market. However, despite this lull, the price of XRP has managed to maintain its key support levels and is currently positioning itself for recovery.
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Interestingly, technical analysis highlights the $2.20 mark as a key level to watch for XRP going forward. This was noted in the analysis of the famous crypto-analyst Ali Martinez, who emphasized that the next big move of XRP may depend on its effect on this border.
Key Levels to Watch: $2.20 Support and $2.70 Resistance
The cryptocurrency market has faced heavy selling pressure since December 17 led by Bitcoin breaks below support levelsleading to remarkable price adjustment across various cryptocurrencies. XRP, in particular, saw its price drop from $2.708 on December 17 to a low of $1.98 on December 20. This represents a 27% drop in three days.
After it reached $1.98, XRP price rebounded and regained the $2 price level. As it stands, XRP is now trading around $2.2, although it is down 7% on a weekly basis.
XRP’s move to the $2.2 price level caught the attention of crypto analyst Ali Martinez, who suggested two ways the cryptocurrency could go from here. According to Ali MartinezXRP’s ability to hold above the $2.20 support is critical to its short-term outlook.
If this level remains the same, the token may enter the consolidation phase, but another attempt to resist $2.70 remains in play. From here, a strong bullish push above $2.7 could send the cryptocurrency above $3 for the first time in years. On the other hand, a break below $2.20 could trigger a quick decline in XRP price towards $1.96 before it starts to attract new buying interest.
A photo From X:ali_charts
The Gathering of the Whale Up During the Crypto Market Correction
On-chain data from Sentiment suggesting that XRP has caught the interest of whales during this recent decline. Wallets holding between 1 and 10 million XRP coins have accumulated 80 million XRP as of December 17, indicating strong confidence in the token’s long-term potential among whale addresses. This accumulation could provide a cushion against further declines below $2 and set the stage for an eventual recovery.
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Adding to the bullish outlook, technical analysis of XRP price using Elliot impulse waves suggests that the recent crash below $2 may be the end of the second impulse wave, which is a corrective wave. With this in mind, bullish impulse wave 3 it is expected to start anytime soon.
At the time of writing, XRP is trading at $2.27.
Featured image from Tech Xplore, chart from TradingView
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