fxs_header_sponsor_anchor

Will this support confluence save XRP price from a 10% drop?

  • XRP price has retraced its move over the past week, undoing the 12% gains. 
  • A support confluence at $0.340 stands between Ripple bulls and a 10% move.
  • If buyers seize control, the altcoin could rally 10% and retest the $0.380 hurdle.

XRP price, like many altcoins, has undone its gains witnessed over the last week. This development comes as the Bitcoin price struggles to move above a historically significant barrier. If bears take control of BTC, things could reflect the same for Ripple and other altcoins as well. 

XRP price needs to make a decision

XRP price broke free from a two-month declining resistance level on July 18 as it rallied 6.3% in a single daily candlestick. As a result, Ripple set a swing high at $0.380, which in hindsight, was a local top for this rally, which started on July 13.

Since the  July 13 swing low at $0.301, XRP price has set up multiple swing points in the area, extending from $0.301 to $0.311. This zone can be termed a liquidity pool and is likely what is preventing  Ripple from going lower.

A breakdown of the support confluence consisting of the declining trend line and the horizontal foothold at $0.340 will confirm the directional bias for XRP price. Assuming buyers fail to defend the aforementioned barrier, investors can expect a quick 10% drop to $0.301.

XRP/USDT 1-day chart

On the other hand, if XRP price manages to bounce off the $0.340 support confluence, there is a high chance of bulls taking back control. In such a case, investors can expect XRP price to rally 10% and retest the $0.380 hurdle.

In a highly bullish case, a flip of $0.380 could lead to a sweep of the double top at $0.387, bringing the total run-up to 14%.

 

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.