XRP, the native token of the Ripple network, has been under scrutiny by technical analysts, with some drawing parallels between its current price action and the one observed in 2014-2017, a period that preceded a major rally.
According to a recent analysis by Dark Defender, a respected analyst in the cryptocurrency space, XRP finds itself at a critical juncture. The analyst highlights a specific price point, $0.3917, designated as the coin’s “Point of Control (POC)” which holds immense significance.
Dark Defender points out that this level represents the area where most XRP trades have transpired since 2014. This price point acts as a psychological barrier, attracting traders who perceive it as an attractive entry point, potentially leading to a price upswing for XRP.
The importance of maintaining this support level is undeniable. A drop below $0.3917 could trigger a further price decline for XRP. Interestingly, Dark Defender establishes a comparison between XRP’s POC and that of Bitcoin (BTC), currently positioned at $1,522. The analyst emphasizes that while Bitcoin remains distant from its POC, XRP finds itself right at its historical trading zone.
Oversold RSI Hints at Buying Opportunities
Dark Defender strengthens their argument by incorporating the Relative Strength Index (RSI) indicator. Their analysis reveals that XRP’s RSI on both daily and weekly charts is nearing the lower end of its range. Historically, such oversold readings on the RSI have presented potential buying opportunities. Additionally, XRP’s monthly RSI reading echoes the lows observed in March 2020 and November 2022, periods that were followed by price rebounds.
Echoes of 2017?
The core argument presented by Dark Defender centers around the uncanny resemblance between XRP’s current price movement and the pattern observed during 2014-2017. This period ultimately led to a significant price surge, propelling XRP to its all-time high of $3.84 in January 2018.
However, Dark Defender emphasizes that maintaining the crucial $0.3917 support level is paramount for XRP to stay on track and potentially replicate the 2017 rally.
XRP’s Recent Price Action
This analysis comes in the wake of XRP’s dip below the $0.4 threshold on July 5th. The price briefly rebounded to around $0.43 within hours and is currently hovering at $0.4364, reflecting a minor daily loss of 0.32%.
Will XRP repeat history? Only time will tell. However, Dark Defender’s analysis provides valuable insights for traders closely following XRP’s price movements.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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