The XRP price may fall sharply because selling pressure is being fueled by a large pool of funds
The price of XRP has lately encountered resistance at key levels as the asset continues to be influenced by a variety of variables, ranging from legal considerations to market sentiment.
Indeed, crypto trading specialist Michal van de Poppe has claimed that XRP has faced stiff resistance at the $0.37 level, adding that based on recent price action, the desire is for the token to soon retake the $0.343 level, he said in a December 30 tweet.
Nevertheless, according to Poppe, there is certainly a substantial amount of liquidity that might be seized if the market does not recover. He likened the present state of XRP to Bitcoin’s performance.
In this vein, he advised investors to keep a watch on the $0.265 level, which is seen as an important support level for XRP.
“This one seems a little peculiar since we’ve seen a severe rejection around $0.37. I’d want to see $XRP quickly retake the $0.343 level; otherwise, a tonne of liquidity is at risk of being absorbed (comparable with Bitcoin). “$0.265 has tremendous support,” stated the trader.
Notable is the fact that XRP has traded sideways for the last several weeks after failing to identify any positive triggers in the lawsuit between Ripple and the SEC. In addition, the asset is suffering from the collapse of the FTX cryptocurrency exchange.
Alternately, a cryptocurrency expert using the alias TradingShot on TradingView said that XRP might flip into a positive trend if it breaks above the lower highs of 2021.
If the coin also breaks over the 0.618 Fibonacci barriers, the expert suggested that the bullish trend might be revived.