fxs_header_sponsor_anchor

Investors need to be cautious with XRP price until this happens

  • XRP price has breached below a descending triangle pattern, triggering a 13% descent.
  • Technicals indicate a retest of the $0.345 level seems likely despite the bulls’ struggle.
  • If Ripple produces a higher high above $0.455, it will invalidate the bearish outlook.

XRP price has breached its consolidation phase but not with massive volatility. As a result, the remittance token is hovering above multiple support levels that might hinder a further move south.

XRP price faces a decisive moment

XRP price has been consolidating for quite some time, setting up four equal lows and five lower lows since May 13. Connecting these swing points using trend lines result in a descending triangle.

This technical formation forecasts a 13% downswing to $0.345, obtained by measuring the distance between the first swing high and swing low to the breakout point at $0.398. 

Ripple breached the lower trend line on May 26, trigger a bearish move to 0.375, where it produced an equal low.

However, due to the lack of volatility in Bitcoin, most of the altcoin market has also seen tiny returns. Therefore, bears need to stay in control and prevent bullish momentum from taking over the XRP price.

If the resurgence of volatility takes place favoring the bears, the coiling up will result in a massive crash. Therefore, investors need to exercise caution and prevent getting caught up in the wrong direction.

However, if the volatility fails to manifest, market participants can expect XRP price to continue its descent to retest at least the $0.371 support level. If the bearish pressure continues to build, Ripple could hit its target at $0.345.

XRP/USDT 4-hour chart

On the other hand, if volatility makes a comeback favoring the bulls, there is a good chance XRP price could trigger a reversal rally. In such a case, Ripple will face a hurdle around the descending triangle’s base at $0.398. 

The bearish thesis will face invalidation if XRP price produces a four-hour candlestick close above $0.455. This move would create a higher high and skew the odds in the bulls’ favor and potentially trigger a run-up to $0.488.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.