- Ripple price is under pressure since the sell-off in Bitcoin accelerated the downtrend in XRP.
- XRP already holds 25% of losses in just six trading days.
- As the RSI trades into the oversold area, expect bulls to be interested in starting buying into the dip.
Ripple (XRP) price was already on the back foot at the beginning of last week, even before Bitcoin tanked over the weekend and the flash crash only accelerated the correction in XRP price action. As losses mount towards 25%, investors are starting to look for being part of the price action as the discount becomes very attractive. The correction may still have some room to go, but the buyers stand ready to step in at $0.70 or $0.62 for a fade-in trade and run price back up towards $1.05.
XRP bulls are ready to pump prices
XRP price got rejected last week at $1.05 and saw bears taking the overhand, running price action below the 200-day Simple Moving Average (SMA), which already labeled XRP price action as bearish and in a downtrend. The move over the weekend with Bitcoin only accelerated that move and moved forward the price target of $0.78 with the monthly S1 support level. With that acceleration, the Relative Strength Index (RSI) overheated and traded in the oversold territory.
Although XRP still looks heavy and has more room to go, a few key levels are starting to be put on the bulletin board of investors where XRP price action could see them stepping in and start buying everything in sight. One level is the blue descending trend line from mid-August, which has been very well respected and has already triggered a bounce off throughout October. Expect the blue trend line to do the same again, this time around $0.70.
XRP/USD daily chart
In case the bounce off does not do the trick, expect the support between $0.62 - $0.58 to do the trick as that last one falls in line with the monthly S2 and should attract more buyers as the RSI will need to cool down and trade back towards the more average 50 level. If Bitcoin tanks further and keeps fueling the spillover effect that is acting as a headwind, expect a possible break below $0.52, opening the door for another push towards $0.30 with the monthly S3 support level as the end of the line.
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
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.