XRP price undergoes significant fade with too greedy bulls
|- XRP price almost rallied towards the monthly pivot around $1.08 yesterday.
- With that rally, bulls started to take too much profit, and price action collapsed.
- Expect a further fade with XRP price possibly falling back to $0.88.
Ripple (XRP) price had a perfect trading day yesterday with a 13% uptick in value. But bulls cut the party short with too much profit-taking once XRP broke above $1.05. XRP price then collapsed back and almost pared back the day’s gains in full The risk today is that more downwards pressure will lead to a break back below $1.0.
XRP looks heavy going into Christmas eve
XRP price saw bulls entering with much joy at the 200-day Simple Moving Average (SMA) near $0.95, yesterday. The price launched like a rocket until bulls took profit above $1.05, killing hopes of another leg higher to $1.25. During the bout of profit-taking XRP price action collapsed, which further increased profit-taking until XRP price pared back almost in full Thursday’s gains.
XRP, for now, is caught between the 55-day SMA at $1.00 and the 200-day SMA supporting at $0.95. For the moment, a break below the 200-day looks the most plausible outcome as liquidity is thin, and more and more investors will not want to engage in the markets during the holiday season. Expect a further correction to the downside during the day as several trading sessions are or will be closing sooner than expected.
XRP/USD daily chart
Once XRP breaks below the 200-day SMA, an accelerated correction will probably follow towards $0.89, which should hold, given the low volume and lack of liquidity. Otherwise, just below there, two more support levels kick in at $0.84 and $0.78.
Should the mood music change some bulls may become interested in buying again leading to a return to $1.05.
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.