- Ripple price tanks massively this week and pairs back a large part of the incurred gains from last week.
- After breaking the above key indicator, last week's weekly close created a weak spot.
- Although the weekend could hold an upward surprise, the fade still looks the most plausible outcome towards $0.3616 and lower.
Ripple (XRP) price is not having its best moment and is at risk of closing into a very bearish technical play. It all comes down to the fact that XRP price action broke above a very important price cap but could not close above it on Sunday evening. With that, the road is paved for a bull trap and with equity markets officially declared in a bear market, the risk to the downside looks to be 80%, with only a 20% possibility of a turnaround by Sunday evening that is strong enough to avoid that bull trap.
XRP price at risk of fully paring back last week's gains
Ripple price had its best performance of the year with over 30% of gains in the books by the close on Sunday evening. Bulls were partying like in 1999 as the 200-day Simple Moving Average got broken to the upside and look to start a bull run next week. Unfortunately, bulls dropped the ball in the last trading hours on the back of the initial results of the Italian election and slipped below the 200-day SMA, offering a weak spot in the price action for bears to use.
XRP price currently is in a bull trap setup, and as long as price action is unable to at least close above that 200-day SMA, price action could further continue to the downside and pair back the incurred gains from last week. Seeing the several tail risks that again escalated this week with the sabotage of the last remaining gas pipeline to Europe and US equities breaking into the bear market territory, there is not much silver lining in the pipeline that could trigger a strong turnaround. Expect thus the move last week to be a false breakout and see price action decline to at least $0.3616 by next week.
XRP/USD Daily chart
Should price action reverse by Sunday evening and pop back above $0.48, expect the pop from last week to see some follow-through going into next week. Expect that $0.4974 to be challenged and needs to be broken to the upside for a continuation of the rally. On the topside, $0.5563 looks the right candidate for a restest of last week's high.
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
Three Arrows Capital demands $1.5B increase in the FTX lawsuit
Liquidators managing Three Arrows Capital's (3AC) bankruptcy have filed a motion to raise their claim against FTX from $120 million to $1.53 billion. Bloomberg reports that FTX allegedly liquidated and seized around $1.33 billion in assets from the hedge fund to settle debts just two weeks before 3AC’s collapse.
Missing crypto influencer Kevin Mirshahi found dead in Montreal Park
Authorities report that the remains of Kevin Mirshahi, a prominent crypto influencer who was abducted in June, have been found in a Montreal park. Local police informed “The Gazette” that a passerby found the grim discovery on October 30 in Île-de-la-Visitation Park.
XRP struggles near $0.7440, could still sustain rally after Robinhood listing
Ripple's XRP open interest has declined by over 10% in the past 24 hours. Robinhood's listing of XRP could serve as a catalyst for renewed demand. XRP continues to struggle near historically strong resistance after sustaining another rejection at $0.7440.
Dogecoin price forecast: Miners offload $240M as DOGE approaches risk zone
After reaching a three-year peak of $0.43 on November 12, Dogecoin price wobbled 13% to find support at the $0.38 level on Wednesday. Miners capitalized on Trump’s recent D.O.G.E confirmation statement to offload 620 million DOGE in the last three days.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
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.