Market makers collected the sell-stop liquidity below the $0.316 support level as Ripple’s XRP token shed 11% in under an hour on January 2. This was followed by a quick recovery and signaled a manipulation move to quell weak holders, providing long-term holders to accumulate.
XRP, at the time of writing this article, was trading at $0.3449 up by 0.10% in the last 24 hours. In the last week, the altcoin has lost nearly 7% of its value. But there is optimism around XRP and Ripple bulls will enjoy a quick run-up soon. It has recovered 16% from the $0.30 bottom formed on January 2. Analysts believe this uptrend will continue with the backing of the Relative Strength Index (RSI) which has shot past the midpoint.
The fresh buying pressure is likely to inflate XRP price to retouch the immediate hurdle at $0.374. Ripple bulls go storm past this barrier and grace the equal highs formed at $0.400. Analysts say investors also need to keep an eye on Bitcoin price as a sudden downtrend for BTC will be reflected by other altcoins and this includes XRP. A breakdown of the $0.316 support level will push aside the bullish thesis by producing a lower low. As such, XRP is likely to revisit the $0.288 support level.
If XRP slips to this level, buyers can regroup and attempt another recovery rally.