• XRP price has slipped below the 2022 volume point of control, suggesting a massive increase in selling pressure.

  • A further retracement could be on the cards despite on-chain metrics’ bullishness.

  • A daily candlestick close below $0.601 will invalidate the bullish thesis for Ripple.

XRP price is in a pickle after the recent flash crash. The pullback pushed the remittance token below a stable support level, indicating that a recovery will not be easy. Moreover, the uncertain outlook for the big crypto does not help Ripple’s situation.

Also read: Dow Jones futures fall as yields spook markets

XRP price at an inflection point

XRP price has been on a steady uptrend since January 22 and showed no signs of slowing down until April 6. Due to the sudden flash crash in Bitcoin price, altcoins – including Ripple – experienced a similar fate.

As a result, the XRP price dropped roughly 10% on April 6 and dug below the 2022 volume point of control at $0.776. The bearish outlook was that the remittance token produced a daily candlestick close below it.

While a quick recovery is favorable to the bulls, it is unsure if it will happen. If the buyers band together and propel the price higher, then investors can expect the XRP price to make a run toward the range high at $0.916. In a big bullish scenario, the uptrend could even extend to the $1 psychological level.

However, due to the slim volume profile below the point of control, the chances of further descent seem likely. Therefore, sidelined buyers should keep a close eye on the range extending from $0.626 to $0.688, which can be termed a buy zone.

Investors can expect a resurgence of buying pressure after a dip into this area. The resulting bull rally could see XRP price flip the range high at $0.916 and make its way toward September 4, 2021 swing high at $1.389. This run-up would constitute a 102% upswing and is likely where the upside is capped for XRP price.

While market profile is looking doubtful for XRP price, investors need to watch for a recovery above the 2022 volume point of control at $0.776. Failure to do so could result in a further crash to the $0.601 support floor.

Further adding credence to this outlook is the recent flip of the Awesome Oscillator above the zero line. This development indicates that momentum is back in the market. The last few times this setup was seen XRP price rallied 450% and 60%, hinting at the big potential the recent move above the zero-line has.

XRP/USDT 3-day chart

XRP/USDT 3-day chart

Perhaps the most interesting on-chain metric for XRP price is the behavior of whales. Wallets holding 10,000 to 100,000 and 100,000 to 1,000,000 XRP tokens have been in accumulation mode since July 2020.

So far, the first category of wallets has increased from 5.2% to 8.2%, while the other group of holders has increased from 7% to 10%. This trend indicates that investors are expecting massive returns from XRP and are optimistic about the future.

XRP supply distribution by balance of addresses 

XRP supply distribution by balance of addresses 

A daily candlestick close below $0.601 will create a lower low from a high time frame perspective and invalidate the bullish thesis for Ripple. In this situation, market participants can expect the XRP price to crash by 38% and retest the $0.373 support level.

 


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


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high

Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines. 

More Cryptocurrencies News
TON set to launch synthetic Bitcoin to boost its DeFi solutions

TON set to launch synthetic Bitcoin to boost its DeFi solutions

TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.

More Ton News
Maker Price Forecast: MKR could stage 40% rally

Maker Price Forecast: MKR could stage 40% rally

MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.

More MakerDAO News
USDT market cap crosses $120 billion as stablecoins continue their uptrend

USDT market cap crosses $120 billion as stablecoins continue their uptrend

The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.

More USDT News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP