The cryptocurrency market is back on its knees following a significant rejection from various key levels of resistance.
While Bitcoin has slumped back down towards $7,850, a number of top altcoins – including XRP and Litecoin – have also suffered dramatic falls from grace.
XRP in particular is now down more than 10% from Tuesday’s high of $0.22, with the digital asset now trading at around $0.20.
The next key level to look out for in terms of XRP is the $0.21 level of resistance, which was respected on numerous occasions throughout November and December.
Failing to build support above this level could well see Ripple’s controversial token fall back towards November’s depressing lows of $0.18, which was the lowest XRP has traded since before the bull market in 2017.
However, one positive for XRP is that it’s currently trading above the 22 exponential moving average (EMA) on the daily chart.
The 22 EMA suppressed price action for a number of months before the new year, so if XRP can continue to trade above this level, it could spur a rally to the upside.
If a breakout above $0.21 occurs, XRP can finally be expected to test the $0.23 level of resistance that formed in November.
The daily relative strength index has also taken a hit in the past 48 hours, dropping from 64 to 50 in light of the 10% correction.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.