Chart analyst Alessio Rastani recently shared his insights on the future of XRP, suggesting that the cryptocurrency may face significant price drops in the near future, potentially revisiting its 2020 lows. Rastani’s analysis focuses on XRP’s price patterns and key levels, offering a detailed outlook for investors.
Key Levels to Watch: Resistance and Support
Rastani emphasizes the importance of key resistance and support levels in determining XRP’s future trajectory. He notes that XRP has been in a corrective phase following significant gains in previous years. Currently trading at $0.46, XRP is down by more than one per cent in the last 24 hours. If XRP fails to break through crucial resistance levels at $0.64 and $0.75, Rastani predicts a possible drop to support levels at $0.41 and $0.35. Should these support levels fail, XRP could plummet further to $0.20 or even $0.10.
Temporary Recovery or Long-Term Decline?
Rastani also revisited his December 2020 analysis, where he accurately predicted XRP’s low point and subsequent rise. However, he warns that the current bounce in XRP’s price may be a temporary recovery rather than a strong upward trend. He believes that unless XRP breaks through the mentioned resistance levels soon, another significant drop is likely.
Also Read: Ripple (XRP) vs. Cardano (ADA): Which Cryptocurrency Will Lead the Recovery Charge?
Historical Context and Future Predictions
Reflecting on past trends, Rastani highlighted XRP’s price correction after substantial rises. He points out that the current price movement suggests a pattern similar to previous corrections. This historical context supports his prediction of a potential downturn, with a high chance of revisiting 2020 lows unless there is a breakthrough above resistance levels.
Conclusion
In conclusion, Alessio Rastani’s analysis presents a cautious outlook for XRP. While there is a possibility of a temporary bounce, the signals from the charts indicate a higher likelihood of a downward move. Investors should closely monitor the key resistance and support levels mentioned to gauge XRP’s future movements.