XRP has been trading at a discount for nearly seven years, and while some analysts remain bullish, others are cautious at this point.
However, Northstar, a macro analyst with around 100,000 followers on X, questioned the bullish optimism surrounding XRP and argued that it may be premature.
In a recent analysis, Northstar highlighted the bearish trend that XRP is experiencing. He noted that according to market charts, the asset is down more than 83% from its previous high, with no clear signs of reversal.
XRP suffers from major failure
Additionally, Northstar noted the significant decline in XRP below its long-standing support line. According to the chart, XRP fell below the support line in mid-2023, but quickly rebounded to near $0.94 shortly thereafter.
A series of retests of this support line were then conducted. Notably, a more significant breakdown occurred in July 2024, when XRP price retested $0.38. Northstar indicated that XRP is currently backtesting this breakdown.
https://x.com/thecryptabasic
Northstar XRP Chart
XRP key resistance level has not been broken yet
XRP fell to $0.38 before recovering and reached $0.65 in August, but has since fallen and is now trading at $0.5433.
Despite this notable resurgence, Northstar’s chart shows that XRP continues to trade below its long-standing support line. Analysts pointed out that the price trend of XRP is worsening as the decline continues, as XRP has fallen 9% in the past 30 days.
Given this trajectory, Northstar wondered why multiple market analysts remain bullish on XRP even though it remains below this important line.
“Why on earth would anyone get bullish before XRP crosses the breakout line?” Northstar tweeted.
His chart suggests that the XRP price will break through the resistance line above $0.65. Essentially, analysts believe that the bullish mood surrounding XRP is misplaced before it regains these levels.
Community reaction
In response to his post, one investor questioned the relevance of technical analysis, saying fundamental analysis remains the primary method for many people to accumulate wealth towards life-changing goals. he claimed. Northstar disputed this, suggesting that TA indicates favorable points for entry and exit from the market.
Another commenter, Edward Sibley, pointed out that many people would rather stay longer and feel more optimistic than sit on the sidelines waiting for a better entry point. “I learned it the hard way, losing over 10 years worth of paper money,” he said.
However, Northstar found this view puzzling. He urged Sibley to go long if XRP breaks out. He also recommended making a 40-50% profit on gold and silver to buy more XRP in case of a breakout later.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
