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XRP has been trading at a discount for nearly seven years, and while some analysts remain bullish, others are exercising caution for now.
However, Northstar, a macro analyst with nearly 100K followers on X, has questioned the bullish optimism surrounding XRP, arguing that it may be premature.
In a recent analysis, Northstar emphasized the bearish trend that XRP has been experiencing. He noted that the asset is down by over 83% from its previous highs, with no clear signs of a reversal in sight, per market charts.
XRP Caught in Major Breakdowns
Furthermore, Northstar cited significant breakdowns for XRP below its long-standing support line. According to the chart, XRP fell below the support line in mid-2023 but quickly rallied to nearly $0.94 shortly after that.
Subsequently, a series of retests of this support line occurred. Notably, a more significant breakdown happened in July 2024, when XRP’s price retested $0.38. Northstar indicated that XRP is currently backtesting this breakdown.
XRP Key Resistance Level Yet to Be Broken
While XRP has recovered since the drop to $0.38, reaching $0.65 in August, it currently trades at $0.5433 amid subsequent pullbacks.
Despite this notable comeback, Northstar’s chart shows that XRP continues to trade below the long-standing support line. The analyst pointed out that XRP’s price action is worsening amid the ongoing pullback, as XRP is down by 9% in the last 30 days.
Given this trajectory, Northstar questioned why multiple market analysts remain bullish on XRP while it remains below this crucial line.
“Why the heck is anyone bullish on XRP before it crosses the breakout line?” Northstar tweeted.
His chart suggests that XRP would breach the resistance line when its price surpasses $0.65. Essentially, the analyst believes the heightened bullish sentiment around XRP before reclaiming this level is misplaced.
Community Reacts
In response to his post, an investor questioned the relevance of technical analysis, arguing that fundamental analysis remains the primary method for many to accumulate assets for life-changing goals. Northstar countered, suggesting that TA indicates favorable points for entering and exiting the market.
Another commenter, Edward Sibley, noted that many people prefer to stay long and feel optimistic rather than sit on the sidelines waiting for a better entry point. “I learned the hard way, losing over a decade’s worth of bills,” he remarked.
However, Northstar found this perspective puzzling. He urged Sibley to go long on XRP if it breaks out. He also recommended making 40-50% returns in gold and silver to buy more XRP if it does break out later.