XRP’s Social Volume Surges; Is a New Breakdown Imminent?
The performance of XRP over the previous couple of years has been woeful. However, it seems it is ready to keep underperforming, as analysts are saying that it is on the verge of incurring a fresh breakdown because it is hovering over a crucial support level.
However, XRP is technically weak as it is revealing signs of recording heightened social activity from investors across social media platforms. The surge in social activity tends to have correlations with uptrends and this could be a sign that the cryptocurrency is ready to incur upside moves in the coming hours and days.
At press time, the performance of XRP was towards the downside at its current price of $0.2036. $0.20 has been a critical psychological price level for the cryptocurrency asset over the previous year and it has acted as both support and resistance several times.
Nonetheless, it has not been left behind in the huge price movements incurred in the entire cryptocurrency markets within the previous week, as it rallied to highs of $0.215 earlier this week when Bitcoin climbed to highs of $10.5k.
When the benchmark cryptocurrency was rejected at $10.5k, XRP returned to the downside to lows of just below $0.20 and it has been into consolidation since then. Likewise, its XRP/USD pair is currently trading at major support and XRP has attained a historically critical BTC support level.
According to an analyst known as BigCheds on Twitter, XRP is currently into a breakdown as a descending triangle is forming on its chart, possibly paving the way for a remarkable downside move.
It is important to note that the cryptocurrency has recorded an increasing social volume over the previous couple of days. In a tweet by data analytics company Santiment, the cryptocurrency has now entered the leading spot on their “Emerging Trends” feed.
Based on history, it seems this happens together with upside moves, but may likewise mean an influx of new funding to be directed to the token.
The ability of the cryptocurrency to detach from BTC and secure some upside momentum could cancel out its near-term downtrend and begin to erase part of its recent losses.