• XRP price dropped by 15% to hit $0.70 on Wednesday.
  • Strong bounce off of the $0.70 price level returned XRP To $0.75.
  • Downside risks remain significant.

XRP price faces continued pressure to the downside despite finding some temporary support against the critical $0.75 value area. Directional bias is most definitely weighted to the downside.

XRP price must hold $0.75, or it faces a return to $0.65

XRP price action returned to a support zone it previously tested back in December. Bulls were able to rally XRP out of the $0.75 zone to the $1.00 but could not maintain those gains. Coincidentally, the significant drop suffered on January 5 was one month from the December 5 flash crash.

XRP remains just above a make-or-break price range. There is little in the form of support between $0.75 and $0.65. The Volume Profile thins out considerably. The following primary price level of support is the 50% Fibonacci retracement at $0.65.

The oscillator values should be a cause of concern for bulls. The Relative Strength Index has a good amount of room to move before it hits the first oversold level in a bear market (30). Likewise, the Optex Bands oscillator is not yet oversold; however, it is getting close. The Composite Index also does not have any significant divergence or extreme range available to hint at a bullish reversal. Nevertheless, all of the listed oscillator conditions favor a further drop for XRP.

XRP/USDT Daily Ichimoku Chart

One factor could trigger a near-immediate bullish reversal, but not based on price action, but time. January 6 is 120-days from the most recent major high found on September 7, 2021. In Gann Analysis, one of Gann’s Cycles of the Inner Year is a 120-day cycle. Gann wrote that the 120-day cycle usually occurs with the trend and should be watched as a countertrend low, especially if a low was found in the 90-day cycle.

Additionally, January 6 is 197 days from June 23 2021, low and falls into the 180-day Cycle of the Inner Year. Significant trend changes or corrective moves often culminate and reverse if a critical high or low is found within the 180-day cycle (the 180-day cycle can extend to 198 days).

Failure by XRP price to establish a clear bullish reversal before January 9 would likely mean XRP will continue to move south.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

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: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

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