Retest Reversal Hints 18% Drop In Ripple Price

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Published 2 hours ago

The Ripple(XRP) price breached the May low support of $0.34, indicating the sellers are ready for another leg down. With the 20-day EMA providing a constant resistance, the altcoin is threatened to slump 20% down to $0.25 psychological support.

Key points: 

  • XRP price hints at a fall below $0.30 to reach $0.25
  • The DMI indicator shows a rise in bearish trend momentum
  • The intraday trading volume in the XRP is $1.48 Billion, indicating a 24% loss.

XRP/USD Price Chart

Source- Tradingview

XRP/USDT price chart shows a similar bearish trend mimicking the broader market trend and falls 77% from the 52-week high level at $1.41. The recent selling spree cracks under the support zone at $0.335, resulting in a fallout drop at the $0.30 mark. 

However, the long-tail formations at $0.30 halt the downfall and retest the bearish breakdown of the demand zone at $0.335. Hence, the bullish breather seems to be a highly dangerous place to buy for short-term gains as the rapid reversal possibilities are incredibly high.

Yesterday’s bearish engulfing candle undermined the retest reversal, and the long-wick formation in today’s candle hints at a bearish continuation tonight. 

The price action analysis shows previous support levels at $0.25 and $0.17, where sellers can expect the fallout rally to take a break. 

Conversely, the bullish breakout of $0.34 can result in a price jump to the overhead resistance level at $0.40.

Technical Indicator

The 20-and-50-day EMAs maintain a bearish alignment and show a falling trend in motion, fueling the correction phase in XRP prices. Moreover, the 20-day EMA remains a crucial dynamic resistance provider keeping the bullish growth in check and opposing the recovery rally. 

Coming to the DMI indicator, the DI lines maintain a bearish alignment, and the drop in ADX represents a rise in trend momentum due to the post-retest reversal. Hence, traders can expect the falling prices to cross below the $0.30 mark.

  • Resistance level: $0.40 and $0.45
  • Support levels: $0.30 and $0.25

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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