Concerns are growing as XRP’s breakout attempt was forcefully rejected at a significant multi-year resistance level. The cryptocurrency has already experienced an 18.5% drop from its recent high of $0.67, but technical indicators and on-chain analysis suggest that the sell-off may continue.
Past instances of failed tests on the descending trendline resistance, which has been in place since January 2018, have historically resulted in declines towards ascending support around $0.50 – a level that is more than 20% below the current price. Additionally, this level aligns with XRP’s 50-week and 200-week moving averages, further establishing its technical significance.
On-chain data raises concerns about increased selling pressure, as the supply held by the richest XRP addresses has recently spiked by over 1.75%. Since these addresses are likely owned by exchanges, it indicates that investors are transferring their funds to trading platforms in preparation to sell.
Although XRP has seen an 80% increase in value this year, its bull run might pause in light of the rejection from long-term resistance. However, some analysts remain optimistic about potential future targets of $0.80-$4.20 by 2024. At present, the prevailing trend suggests a downward trajectory, despite the broader uptrend in the crypto market.
