All financial markets experienced a very volatile trading week and crypto was not spared. In the digital asset market, some performed worse than others and, unfortunately for the XRP army, their favorite token was one of them.
The cross-border token fell sharply, particularly on Friday afternoon, to a seven-week low of $1.17 before rebounding slightly as the day progressed. This massive pullback hurt broader XRP sentiment.
Is the crowd getting too bearish?
Popular analyst Ali Martinez said after XRP’s sharp fall that social sentiment had fallen to its lowest level since July, reflecting a sharp deterioration in trader confidence. From a contrarian perspective, however, he thinks it might be a blessing in disguise. The token appears to be forming a potential reverse head and shoulders bottom, but the analyst argued that the general public has not recognized or bought into the pattern.
In other words, the bull side may not be overcrowded yet, as investors have entered extreme fear territory. This thesis comes shortly after the asset suffered one of the steepest declines among large-cap altcoins today, falling from $1.35 to $1.185 and then to $1.17 on Friday. This is the lowest price since the August 22 rally.
Martinez previously identified the right shoulder of a potential inverse H&S structure and listed $1.60 as a major upside target if the trend continues. However, XRP was rejected at the resistance level he highlighted and fell well below the support in his analysis.
$1.10 Next?
Meanwhile, CasiTrades offered a much less optimistic immediate setup, arguing that With the token falling back below key support at $1.26 and again below $1.20, she now expected a move towards the major Fibonacci target of $1.10, while previously identifying $1.125 as a possible break or bounce zone.
She hopes to see a bullish divergence in the RSI around $1.10, which would suggest a weakening of bearish momentum and could mark the end of the current second wave correction.
Dark Defender, on the other hand, said The broader structure of XRP remained unchanged and highlighted $1.12 as former resistance from July and August which should now act as support. According to him, the $1.21 and $1.12 areas remain consistent with the second wave roadmap he outlined in late October, while a broader third wave move is still developing.
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