XRP has stayed below a critical support level long enough, and there could be a rally coming soon. However, the coin needs to hold onto a $1.9 level for the bull rally to play out.
Every single time that XRP has crashed below the 50-week simple moving average (SMA) and stayed below this level for around 50–84 days, it has always produced a major rally. History shows that in 2017, after 70 days of staying below this level, XRP gained more than 200%.
In 2021, it took only 49 days for XRP to appreciate by more than 70%, and last year it was just 84 days, which produced a massive 850% rally.
Now that XRP has been below the 50-week SMA for 70 days, there could be another rally building, although it is invisible. Let’s take a look at the technicals to see what is actually happening.
The below XRP weekly chart shows that the coin is once again testing the support level at $1.9, after crashing below the $2 psychological support level. The coin is now at a pivotal stage, and it is crucial that the bulls defend this support level to set up XRP for a rally.
This support level acted like a launchpad, helping XRP rebound every single time its price crashed here. In the past 12 months alone, XRP rebounded three times, reaching as high as $3, and the one time it broke above $3, it reached $3.2.
That said, the technical dashboard is showing alarming signals. According to the Moving Average Convergence and Divergence (MACD), conditions do not look favorable.
The MACD line is still in the negative direction, and it may keep heading deep into the negative territory. If the MACD line continues in the same direction, it will challenge the $1.9 support level that XRP is currently clinging to. In the event prices crash below this level, then an XRP bull rally will be questionable.
