XRP price has witnessed a jaw-dropping crash, wiping out liquidity levels as far back as 2020. Key levels have been defined to gain perspective on XRP’s potential landing grounds.
XRP price in a deadly decline
XRP price has experienced a devastating mudslide as the digital remittance token breached new monthly lows at $0.316. As investors jump ship, traders must decide whether or not to get involved after XRP’s 35% loss of market value.
XRP price currently auctions at $0.37 as the bulls have produced a 12% rebound from the newfound lows. The volume profile indicator shows a massive increase in transactions during the decline while the Relative Strength Index continues to tread in oversold territory.
Based on these factors, calling a market bottom may be too ambitious at the current time. However, a continuation of the countertrend stands a fair chance of occurring. If market conditions persist, XRP price could rally back towards $0.41 and potentially $0.44 in the short term. Traders should expect before jumping back into flexing their power once again if these levels are tagged.
Invalidation of the short term trade idea depends on the recent lows at $.316 remaining untagged. A further decline toward 2020 liquidity levels at $0.24 could occur if the levels are breached. Such a move would result in a 35% decline from the current XRP price.