XRP has been trade in decline over the past few days side by side wider cryptocurrency market. However, despite this attraction, the price of XRP has been able to maintain the necessary support levels and is currently positioning itself for recovery.
Related Reading
Interestingly, technical analysis highlights the $2.20 mark as a key level to watch for XRP in the future. This was noted in a study by the popular crypto analyst Ali Martinez, who emphasized that XRP's next big move could depend on its outcome on this threshold.
Key Levels to Watch: $2.20 Support And $2.70 Resistance
There has been significant selling pressure on the cryptocurrency market since December 17 led by Bitcoin Breaks Below Support Levelsfollows in particular price corrections across different cryptocurrencies. XRP, in particular, saw its price drop from $2.708 on December 17th to bottom at $1.98 on December 20th. This represented 27% in three days.
After reaching $1.98, the price of XRP reversed and regained the price level of $2. As of now, XRP is now trading around $2.2, although it is still down 7 % in the weekly timeframe.
The movement of XRP around the $2.2 price level has caught the attention of crypto analyst Ali Martinez, who suggested two ways in which the digital currency can 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 intact, the indicator could enter a consolidation level, but another attempt at the $2.70 resistance is still underway. From here, a strong move above $2.7 could send the digital currency above $3 for the first time in years. On the other hand, a break below $2.20 could lead to another rapid decline in the price of XRP to $1.96 before it starts to attract new buying interest.
Picture From X: ali_charts
Whale rallying up amid crypto market correction
On a chain data from Santiment suggesting that XRP has captured the interest of the whales during this recent downturn. Wallets with between 1 million and 10 million XRP coins have accumulated an additional 80 million XRP since December 17, which shows strong confidence in the long-term potential of the token among whale addresses. This rally could provide a cushion against another decline below the $2 mark and set the stage for an eventual recovery.
Related Reading
Adding to the bullish outlook, technical analysis of XRP price using Elliot impulse waves suggests that the recent crash below $2 could be the end of the second impulse wave, which is a wave correction. 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
