fxs_header_sponsor_anchor

XRP price is setting up for a sharp decline toward $0.40, here's why

  • XRP price is facing significant resistance near $0.50.
  • Ripple shows a tapered volume look, suggesting the uptrend is losing strength.
  • Invalidation of the bearish thesis is a breach above $0.51.

XRP price could witness a sell-off into the mid $0.40 levels if the bulls hurdle through the $0.50 barrier. 

XRP price may be losing steam

XRP's failure to maintain momentum over the $0.50 threshold may result in Ripples' demise. 

In contrast to the last bull run that propelled XRP into the current price levels, the volume pattern throughout the last three attempts to overcome the $0.50  has been dropping. This is a subtle indicator that the upward trend is waning.

XRP is currently trading at $0.499 as another attempt is being made to hurdle the barrier. Still, the volume pattern maintains a relatively sparse look, suggesting retail traders alone may be pushing the price. If this is the case, a liquidation towards $0.47 and potentially $0.40 (if $0.47 does not hold) could occur in the coming days. The Relative Strength Index confounds this idea as a clear bearish divergence is shown as the XRP price ascends and attempts to rally through $0.50

XRP/USDT 2-Hour Chart

Invalidation of the bearish thesis can occur if the bulls breach the $0.51 level. In doing so, a buyers' frenzy targeting $0.56 could occur, resulting in an 11% increase from the current XRP price.

In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market. -FXStreet Team

 

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.