- XRP price shows a decline in buying interest after a sweep of the $0.387 equal highs.
- If the selling pressure continues, investors can expect the remittance token to revisit $0.340.
- A daily candlestick close above $0.381 that flips the level into a support floor will invalidate the bullish thesis.
XRP price performs a U-turn after sweeping crucial levels and collecting liquidity. This retracement seems apparent, especially considering the bearish outlook for Bitcoin price from a lower time frame perspective and altcoins’ high correlation with it.
Ripple price lacks momentum
Ripple price appears to be forming a topping pattern. Initially, it broke above a two-month declining resistance level on July 18, but failed to sustain the rally. As a result, the XRP price sank lower and swept the July 15 swing low at $0.326, the original level responsible for the breakout.
After this move, XRP price once again rallied, this time by a total of 25%, to set a swing high at $0.41. This move collected the liquidity resting above the equal highs at $0.387, signaling a top formation. As seen in the chart, the Reversal Finder indicator signaled a top formation with a red dot and down candlestick, adding credence to the upcoming downswing.
As a result, XRP price has dropped 10% and is currently trading below the $0.381 support level. A minor throwback might arise after the recent sell-off, but rejection at the immediate resistance barrier will confirm the continuation of a downtrend.
In such a case, investors can expect Ripple price to revisit the $0.340 support level.
XRP/USD 4-hour chart
While things are looking overall bearish for Ripple price, a move above the $0.381 barrier will confirm a resurgence of buying pressure. A flip of this level into a support floor will invalidate the bearish outlook and trigger a potential move up to $0.439.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.