Ripple price to crash 40% as bulls do not respect handles
|- Ripple price has continued its decline since the end of March.
- XRP, though, might eke out gains for this week.
- The descent is ongoing, with acceleration likely as key support was broken again this week.
Ripple (XRP) price is becoming an example of ‘the faster they grow, the harder they fall.’ Last week's slide with already 10% losses should have warned bulls that sentiment is starting to change across the board. This week looks no different, as support got broken again and is showing signs of weaker buying on dips.
Ripple price starts to make no sense in terms of trade management
Ripple price is starting to show cracks as the descent is not yet showing signs of being done. Although XRP might be printing a green candle for this week, it does not make sense from a trade management perspective, as the 55-day Simple Moving Average (SMA) has been broken to the downside. Bulls who entered below are fully exposed and are set up for a bull trap as they have no concrete pivotal level or any technical element to hide their stop behind from being hit.
XRP thus sees quite a few bulls as sitting ducks with the largely exposed positions that will get stopped once bears push price action back below the 55-day SMA. Expect a quick drop towards $0.40, which means $0.36 is within reach. Should even $0.36 break down, expect the panic mode to arise with heavy selling, and a falling knife toward $0.29 could be the possible armageddon scenario.
XRP/USD weekly chart
To confirm a recovery that is viable and could be the turnaround after the minor correction, XRP needs to head above $0.50 again. That would signal to the markets that bulls have taken over the steering wheel again and that a rejection against $0.50 was avoided. Next week $0.55 would get under pressure for a break higher and might see briefly $0.60 when peaking.
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