XRP has slid to around $1.04 after falling below $1.28 to $1.31, a major support zone, raising the burden on investors who bought on the dip.

On Nov. 10, blockchain outlet The Crypto Basic reported that crypto trader Nebraskangooner called the current XRP "a great example of when to NOT BUY" and warned against premature buying on weakness.

He warned that if key support breaks, selling pressure can drag prices lower. He meant that a lower price alone does not make a level technically attractive.

The problem is a structural shift, not the price. XRP repeatedly found support in the $1.28 to $1.31 range in October and tried to rebound, but the trend changed after it broke below the zone. The drop from around $1.31 to current levels is about 18 percent.

There were several brief rebounds during the decline, but the pattern of lower highs and lower lows remains. That is why a move from $1.30 to $1.20 and then down into the $1.10s does not mean selling pressure has ended.

XRP has now slipped into the $1.04 range, falling below $1.07 to $1.10, which had been cited as a support zone. Based on Binance daily candles on Nov. 9, it started at $1.1132 and rose to $1.1264, but fell intraday to $1.0764 and closed near $1.0939 before extending losses.

Attention is now shifting to whether it can hold the psychological support level of $1.00. The downside from $1.04 to $1.00 is about 3.8 percent. Even if it rebounds, a key point to watch is whether it can reclaim the prior support zone of $1.07 to $1.10. It would then need to recover levels lost in the decline, with the biggest structural test at $1.28 to $1.31.

The market is placing more importance on whether XRP can settle back above this zone than on whether buying emerges at lower prices. Until XRP consistently retakes this resistance, the market is likely to keep reaffirming that a cheaper price does not necessarily mean an appropriate buying point.

$XRP Is a great example of when to NOT BUY. If you see a major support break down the cheaper prices don't always mean a positive discount. Often times the worst time to buy is after loss of key level because that's when sellers take over. Quit knife catching early! https://t.co/lUvBnyZdp7