The price of XRP has recently faced rejection in critical positions as the asset continues to be affected by various factors, from legal sentiment to the general market.
Indeed, crypto trading expert, Michaël van de Poppe has suggested that XRP has encountered harsh endurance at the $0.37 level and noting that based on the recent move, the preference is to see the token recapture the $0.343 level relatively quickly, he said in a tweet on December 30.
However, according to Poppe, there is likely to be a significant amount of liquidity on the downside that could be taken if the price does not recover. He compared the current situation with XRP with the performance of Bitcoin (BTC).
Along these lines, he noted that investors should keep an eye on the $0.265 level, which is seen as a key support level for XRP.
“This one looks a bit strange, as we have seen a hard rejection at $0.37. I would prefer to see $XRP recapture the $0.343 level relatively quickly; otherwise a ton of liquidity is down (comparable to Bitcoin). Massive support at $0.265,” the trader said.
It is worth noting that XRP has been trading sideways in recent weeks after failing to find any bullish shoot in the case between Vibe and the Securities Market Commission (SECOND). In addition, the asset is also recovering from the effects of the FTX crypto exchange crash.
XRP potential for bullish reversal
Elsewhere, a cryptocurrency analyst with the pseudonym commercial shot on TradingView highlighted that XRP could reverse to an uptrend if it breaches the lower highs of 2021.
In this case, the analyst stated that the bullish trajectory could be reactivated if the token also breaks above 0.618. fibonacci level.
“In the long term, we can only hope that XRP reverses into a uptrend if it breaks above the 2021 Lower Highs and ideally the 0.618 Fibonacci level where it failed on September 23, thus becoming the first Higher High in over 1.5 years,” the analyst said.
The analyst added that XRP has also “been flying low” since the FTX crypto exchange crash.
XRP Price Analysis
XRP is currently changing hands at $0.34, having corrected by more than 2% in the last 24 hours. On the weekly chart, the token is down more than 3%.
Elsewhere, the recent rejections of XRP have delayed the asset’s potential rise to the resistance position of $0.40, which acts as a crucial level to recover $0.50.
As it is, the machine learning algorithm in PricePredictions projects that the digital currency will enter the new year in a bearish note to trade at $0.33 on January 1, 2023.
Meanwhile, the ongoing SEC case remains the most fundamental aspect of the XRP price projection. In fact, the outcome of the case will likely have both bearish and bullish sentiment on the asset.
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