Ripple’s cross-border token staged one of the most impressive recoveries in the past 10-12 days, surging from just under $1.00 to a multi-month peak at $1.70.

However, this major rally was halted, and the momentum has faded, with the asset currently struggling to remain at $1.40, which represents a 20% pullback from last Saturday’s top. The landscape worsened on Friday after the hawkish speech by Fed Chair Kevin Warsh at Jackson Hole.

Major Test Approaches

Popular analyst Ali Martinez has been tracking the major change in XRP’s underlying activity throughout the latest move. As previously reported, active addresses on the XRP Ledger skyrocketed by over 650% at one point, jumping from 47,180 to more than 356,000. At the same time, whales went on an impressive accumulation spree, acquiring over 300 million tokens in only 96 hours.

What matters most now is whether that demand can prevent the latest pullback from developing into something considerably worse. The technical structure has weakened since the rejection at $1.70, and the token is struggling at $1.40. According to Martinez, this means that the asset failed to hold above the 50-week exponential moving average at $1.54.

This has turned attention toward the $1.35-$1.38 region as the next important support zone, which is currently being tested. The analyst said that roughly 3.2 billion XRP were traded in this area, according to the URPD, underscoring its significance.

Fellow market commentator CRYPTOWZRD outlined the change in the recent structure, indicating that XRP was bearish and volatile throughout the day before closing lower. They believe holding above $1.40 is crucial, but this hasn’t been the case so far.

What About a Breakout?

Martinez also highlighted the most significant resistance barriers to watch if XRP resumes its rally from the previous week. The first is located at $1.60, where 1.99 billion tokens were traded. $1.68 follows suit with a similar number of traded coins.

The biggest obstacle is at $1.86, where 3.47 billion XRP were traded. A breakout above that level can open the door for a run toward the psychological $2.00 level and up to $2.19 next.

Source: CryptoPotato