XRP Price Prediction: Ripple momentum weakens as bears contemplate 15% decline
|- XRP price dropped below a crucial support level on November 26, possibly unraveling a bearish forecast.
- The governing technical pattern suggests that Ripple could see a decline of 15%.
- To avoid the pessimistic outlook, XRP would need to climb above $1.07.
XRP price fell below an essential line of defense on November 26, opening up the possibility of a further decline for Ripple. The cross-border remittance token is now struggling to tag higher levels as selling pressure increases.
XRP price faces minor sell-off
XRP price has sliced below the lower boundary of the ascending parallel channel pattern on the daily chart, unraveling a bearish outlook. The prevailing chart pattern suggests a 22% decline from the downside trend line from $1.03.
XRP price may discover its first line of defense at $0.92, where the support line given by the Momentum Reversal Indicator (MRI) sits. The next foothold will emerge at the 61.8% Fibonacci retracement level at $0.86. If investors continue to engage in profit-taking, Ripple may drop lower to tag the bearish target at $0.79, resulting in a 15% descent.
If a massive spike in sell orders occurs, XRP price may drop even lower, exceeding the aforementioned target, reaching the 78.6% Fibonacci retracement level at $0.70, corresponding to the July 30 low.
The Arms Index (TRIN) which gauges overall market sentiment suggests that there are substantially more sellers than buyers in the market.
XRP/USDT daily chart
If the bulls decide to step in to undo the bearish narrative, XRP price will face immediate resistance at the 200-day Simple Moving Average (SMA) at $0.96, coinciding with the 50% retracement level.
XRP price may have a chance at restoring its uptrend if it climbs back above the downside trend line of the parallel channel at $1.07, corresponding to the 38.2% Fibonacci retracement level. However, a stiff hurdle may appear close by at $1.11, where the 21-, 50- and 100-day SMAs intersect.
An acceleration of interest in Ripple may see XRP price ascend higher toward the middle boundary of the prevailing chart pattern at $1.25.
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.