• Ripple price action broke below an intermediary ascending trend line.
  • The 55-day SMA is providing a temporary floor and triggering a bounce.
  • With this window of opportunity, it is time for bulls to take their profits and run before XRP price is set to collapse by 18%.

Ripple (XRP) price action breaks below an intermediary ascending trend line that formed the backbone for the current uptrend after the invasion of Russia into Ukraine. Although the trend line provided support for a bounce yesterday, delivering a rejection of bears, the current losses in European stock markets has created leverage in safe havens and given bears the upper hand in risk assets like cryptocurrencies. Currently, the 55-day Simple Moving Average (SMA) at $0.73 is providing support to a pull-back, but with non-farm payrolls and a possible eventful weekend in Ukraine again, expect that support to be broken later today with XRP price action dropping as much as 18% to $0.62.

Time to take the parachute and head for the exit 

Ripple price action is in risky territory for bulls as bears are taking over again going into the weekend. Since bulls were unfit to break above $0.78 and seize $0.80 to the upside, the price has been trading to the downside for the third day in a row today. As the bearish pressure mounts, a short-term supporting trend line has been broken to the downside and, as such, has halted the recovery rally since Russia entered Ukraine.

For now, XRP bulls see the 55-day SMA holding and creating a bounce on a test, but the pressure is mounting with lower highs intraday as safe havens are heavily bid, and the dollar strength is adding momentum for bears to push more to the downside. Expect a break of $0.73 to the downside to trigger a drop to $0.70. Once below there, there is not much in the way to prevent a drop towards $0.62, which was the low of February 24 and caught the falling knife action – to the tick on that day, but spells an 18% loss for XRP against where we are at the moment.

XRP/USD daily chart

XRP/USD daily chart

Markets would welcome a cease-fire to depressurize the current situation and give markets some relief. Assets classes often move in one direction as an elastic band and sooner or later need to partially unwind a stretched position, which would be no different for XRP price action. With such a move, expect to see a leg up towards $0.78 or $0.80 and with a test specifically at $0.8030, which is the double top from February 21 and March 01.


 


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

Is Altcoin Season here as Bitcoin reaches a new all-time high?

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.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

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.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

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.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

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.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

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.

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