Although bulls made a strong attempt to reverse the recently formed bear trend during this past weekend when Bitcoin quickly rose to $11,000, its swift rejection at this price and subsequent downtrend has wreaked havoc on the crypto markets, and has led most major cryptos – including Ripple (XRP), Ethereum, and Litecoin to plummet.
Despite this, there may still be money to be made in these increasingly bearish times, as analysts are now noting that XRP may currently be in the process of forming its largest bullish divergence in its history.
Ripple (XRP) Plummets to Support Level at $0.30 as Selling Pressure Perpetuates
At the time of writing, Ripple is trading down approximately 4% at its current price of $0.30, which is down significantly from its daily highs of over $0.32.
This drop marks an extension of the downwards pressure that XRP first incurred this past Saturday, when its price ran to highs of $0.34 before bears came out swinging and drove its price towards its current levels.
This price action has been very similar to that of the entire crypto markets, but unlike other altcoins that still have a significant amount of distance between their 2018 lows and their current prices, Ripple is currently trading just a hair above its 2018 lows of just over $0.26.
Despite this, Livercoin, a popular cryptocurrency analyst on Twitter, recently explained that he believes XRP will drop another 60% against BTC in the near-future, which may then be proceeded by a massive rally.
“$XRP – Expecting a relief rally in the coming week(s) – Then another 60% dump – Mega pump once we reach the untested swing low,” he said while referencing the below chart.
Could XRP Be Gearing Up for a Massive Rally as Oversold Conditions Worsen?
Although Livercoin believes that XRP will drop significantly further in the coming days and weeks, another analyst is noting that the cryptocurrency is currently in “historically oversold” territory that is typically followed by a price surge.