XRP has been trading at a discount for nearly seven years. While some analysts remain optimistic, others maintain a cautious stance amid the current market conditions.
Macroanalyst Polaris, with nearly 100,000 followers on X, challenges the prevailing optimism around XRP, suggesting it may be premature. In a recent analysis, Polaris highlighted XRP’s bearish trajectory, noting the asset has declined over 83% from its previous highs with no clear reversal signs.
XRP Faces Critical Breakdown
Polaris observed a significant breakdown below XRP’s long-term support line. Charts indicate XRP breached this level in mid-2023 but briefly rebounded to ~$0.94. Subsequent retests culminated in a sharper drop to $0.38 in July 2024. According to Polaris, XRP is now undergoing a backtest of this breakdown.
Unbroken Resistance: A Barrier to Bullish Sentiment
Despite recovering to $0.65 in August after the $0.38 dip, XRP has since retreated to $0.5433. Polaris’s analysis shows XRP remains below the long-term support line, with worsening price action—down 9% over 30 days.
👉 Why are traders bullish on XRP despite its struggles?
The analyst questions the rationale behind bullish forecasts while XRP lingers below this pivotal level:
“Why is anyone bullish on XRP before it breaks the breakdown line?”
His chart identifies $0.65 as the breakout point. Until then, Polaris argues, optimism is misplaced.
Community Reactions
- Skepticism Toward Technical Analysis: One investor dismissed TA in favor of fundamental analysis, citing long-term accumulation strategies. Polaris countered that TA identifies optimal entry/exit points.
- Long-Term Holders’ Perspective: Edward Sibley noted many prefer holding optimistically rather than timing the market. Polaris advised leveraging breakout moments, suggesting alternative assets like gold/silver for interim gains.
FAQs
Q: What’s the key resistance level for XRP?
A: $0.65—breaking this could signal a bullish reversal.
Q: Why are analysts divided on XRP’s outlook?
A: Mixed signals: long-term potential vs. unbroken resistance and recent declines.
Q: How does XRP’s current price compare to its peak?
A: It’s down ~83% from all-time highs.
Q: Is technical analysis reliable for XRP?
A: It provides strategic insights but doesn’t negate fundamental factors.
Q: What alternatives does Polaris suggest?
A: Gold/silver for stable returns, then reinvest in XRP post-breakout.
👉 Discover more about XRP’s market dynamics
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