Key Takeaways
What is the next expected price move for XRP?
Despite the aggressive buying activity in the Futures market, the price action firmly pointed toward an XRP drop to $2 or lower.
What needs to happen to change this bearish outlook?
An XRP rally beyond the overhead supply zone that extended up to $2.8 would be the first step to shifting the price’s direction bullishly.
Last week’s news of Ripple [XRP] stepping into the digital asset treasury (DAT) landscape sent the media into a frenzy. It was leveraging its on-chain infrastructure to deliver seamless payment solutions.
This news did not stabilize the fearful sentiment in the market, but it did reinforce the conviction of long-term investors.
The ongoing government shutdown has delayed the SEC’s approval process for the XRP exchange-traded funds (ETFs).
Ripple’s treasury push fails to lift market mood
In a post on X, crypto analyst Maartun pointed out that the Co-Founder of Ripple, Chris Larsen, had realized over $764 million in profits since January 2018.
These come from XRP sales, which the analyst observed tended to occur around local market tops.
He wrote that while Larsen booked profits, XRP holders continued to hold the bag.
Trader KriptoMessi observed that the XRP Futures Taker CVD had turned bullish over the past few days.
Source: KriptoMessi on X
The XRP market dominance was also set to rebound from where it usually has responded over the past year.
Additionally, 30k Bitcoin [BTC] sent to exchanges for profit-taking on the 21st of June 2021, didn’t stop Bitcoin’s rally to $69k. Neither will Larsen’s XRP sales, wrote the user.
XRP coils within a familiar pattern once again
Source: XRP/USDT on TradingView
The pattern of lower highs and equal lows was occurring once again. In fact, the price action in recent months moved within a descending triangle.
Highlighted in cyan, and beneath the imbalance on the daily chart between $2.5-$2.77, the prospects of a bullish breakout appeared slim.
Even though the weekly market structure was bullish, XRP appeared likely to falter beneath the $2.3 support level. Popular crypto analyst Ali Martinez agreed with this idea, posting that the next key target is $2.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Source: https://ambcrypto.com/traders-weigh-xrps-breakout-odds-will-history-repeat-below-2-3/