XRP price has faced a challenging market environment over the past year, with its price struggling to break key resistance levels. While the market is showing signs of being positive according to some investors, technical analysts are still a bit skeptical.
One of such analysts is Northstar who has recently expressed some concerns with regard to the prevailing positivity on cryptocurrency. He noted that the asset has not broken through the vital resistance level of $0.65 hence the need to be cautious.
XRP’s Price Performance and Technical Analysis
XRP has seen a bearish trend for a long time now and is far from its historical price levels. Northstar, a macro analyst, said that XRP has declined by over 83% from its previous high.
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He pointed out that the cryptocurrency has experienced several breakdowns from the crucial support level that has been in place for a long time, and there is no sign of a trend reversal.
In mid-2023, XRP bounced back to $0.94 from the break of this support level but could not sustain its gains. A more severe breakdown took place in July 2024, when the price reached the $0.38 mark.
Although it had rallied to $0.65 in August, XRP has given back some of its gains and is presently trading at $0.54. According to Northstar, this decline is worrisome for the XRP price, with the cryptocurrency still struggling to trade above the long-term support line.
XRP Resistance at $0.65 Remains a Key Barrier
XRP price has continued to struggle to break past the $0.65 mark, which has become a key area of interest in the analysis of the XRP price chart. Northstar noted that as long as the price of XRP does not convincingly break through this level, the present upbeat view could be untimely.
He said,
“Why the heck is anyone bullish on XRP before it crosses the breakout line?”
According to him, a breach of this level could open up a potential new trend in the price of XRP. Northstar’s findings are in line with the asset’s current bearish trend given that XRP has declined by 9% within the past month.This, in turn, has negatively impacted its short-term outlook.
At the same time, macro investor Jason Pizzino has discussed the performance of XRP in contrast with other high-risk assets.
Pizzino even went as far as to suggest jokingly that XRP might have to become a meme coin in order to see the kind of growth rates that the likes of Dogwifhat (WIF) and PEPE have experienced this year.
However, Northstar urged the investors to be a bit more patient, and wait for the price to break through the $0.65 level before making an entry.
He also proposed that investors should expand to other types of assets for example, precious metals like gold and silver so that they could use the income they would get from the investment to buy XRP at a more opportune moment.
Ripple’s Activity Raises Speculation
While XRP is facing the problems with the price, Ripple – the company linked to the cryptocurrency – has attracted attention because of big XRP transactions. Recently, Ripple transferred 200 million XRP worth over $109 million between two of its wallets as indicated by Whale Alert.
This transaction is similar to others in the past few months and has led to debates within the community over what Ripple is trying to achieve and its effect on the market.
According to Bithomp, these two addresses have been used in a number of transactions, with the receiving wallet normally splitting the funds between different exchanges.
The intention behind such transactions is not very clear, however, it has generated a lot of rumors with regard to Ripple’s strategies especially in correlation with the price of XRP.
Disclaimer
The information provided in this article is only for educational and informational purposes and should not be considered financial or investment advice. We are not licensed financial advisors. Always conduct your research and seek guidance from a certified financial professional before making any investment decisions.
