The trading price of XRP has been facing major downtrends in the past few days. It is all thanks to multiple factors that are negatively impacting the performance of one of the largest cryptocurrencies.

XRP Price is Facing Rejections

In the recent trading sessions, the bulls have attempted to push XRP higher but they have failed badly. Despite their attempts, the price of XRP has continued to lose its value in the market.

The bears have continued selling XRP with greater resolve than the bulls, which is why the asset price has kept moving downward.

The bulls went through several disputes with the bears at critical positions but all of them ended up with failures. Thus, the trading price of XRP kept losing its momentum and position in the bullish market.

Instead, XRP has entered the bearish zone and various general market and legal factors are keeping it pinned down.

XRP Expects to Reclaim $0.343

Michael van de Poppe, one of the experts in the cryptocurrency trading industry has shared his analysis of the trading price of XRP.

As per him, it is very difficult for XRP to be able to hit and cross the $0.37 level. It has become a level with very high resistance. Investors may find it very difficult to push the trading price of XRP past $0.37.

The bears may not let that happen given the amount of power and support they have from the market. It would be wise for the bulls to avoid the particular level and go with a different approach.

Instead of going for the $0.37 resistance level, the bulls must focus their buying energy on a lower trading level. Still, the bulls will need to build up a strong buying force to push XRP to that particular level as well.

As per Poppe, the bulls must eye the $0.343 level, which they have hit and crossed several times in the past. For them, it would be important to first reclaim this level so the market sentiments may move in their favor.

Once they have the support, they can think about moving the price of XRP to a higher level. Poppe shared his thoughts and analysis on XRP through a December 30 tweet he made about the asset.

The danger of High Liquidity

Poppe has also predicted that the future of XRP may fall into a dire state if its price keeps plummeting. He has predicted that it is very important for XRP to bounce back and move to a higher trading level.

The investors have been supporting the asset for a while and they may not be able to offer the same kind of support they have offered it until now.

If the price of XRP gives way to the bears, it may lead to a major downtrend and high liquidity will be witnessed. This would mean that the investors will keep selling XRP on a large scale.

This would eventually pull XRP’s trading price to the very bottom. He has compared the performance of XRP with Bitcoin (BTC).

Bitcoin has been struggling to hit higher levels in the same manner as XRP. However, with no support coming in, predictions are being made that the price of the asset may plummet to $14,000.

Just like Bitcoin, XRP is also moving in a downward direction and may find strong support at $0.265. It is a high support level where the bulls will need to make sure they sustain the selling pressure.

If they fail to do it, then the price of XRP may continue plummeting on a very large scale. The bulls will flee and no more support may be witnessed for XRP in the upcoming days.

As per Poppe, the $0.265 mark is considered a massive support level so it is highly likely that the bears may get pushed back at this level.