XRP is in the process of proving whether its breakout is real, with the price moving down to an important support line. A piece on Cheeky Crypto puts forward the view that what we are seeing now may be the make-or-break moment for a multi-year pattern not seen since 2017.
Why the $0.82 Level Matters for XRP
With XRP’s value falling to the $0.82 mark, all eyes are on this figure. The host at Cheeky Crypto calls it the dividing line between support and resistance. Should the coin be able to hold firm there, it would be a textbook case of old resistance turning into strong support, which is how you validate a breakout.
It is a pivotal point. While the asset has done the work on the compression and initial breakouts, as any good analyst will tell you, a retest is required to seal the deal. If the price can’t hold, then the bullishness we’ve been seeing may have been nothing more than a false start.
Lessons from the 2017 XRP Breakout
In the view of the Cheeky Crypto analyst, there is a case to be made for looking at XRP as it was in 2017. At the time, the asset worked to break through a key resistance after being coiled up for a while. Once over that hump, it came back to test the line and found support, which set the stage for a strong run-up.
You can see the same kind of setup now, and it is no wonder the community has its eyes on it. But the analyst is quick to point out that history is not an exact science. The market and the rules of the game are not what they were in 2017, so one should not expect a carbon copy of what happened before.
Potential Outcomes: Valid Breakout or False Signal?
Holding the $0.82 mark is key for XRP. Do so, and it may well be the catalyst for some fresh bullish energy, validating the breakout and drawing in a new wave of buyers. In turn, that kind of move would put more faith in the long-term uptrend and could be what propels the next phase of gains.
Should the price not hold its ground here, however, the case for the breakout as anything but a false start becomes hard to make. That scenario would have the opposite effect, with prices likely to give way and investors treading more carefully. The host of Cheeky Crypto has it right: we are watching XRP’s every move in the days ahead, since what happens now will probably define where the token goes from here.
Source — Cheeky Crypto: https://www.youtube.com/watch?v=pdvJIe0e1Iw
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