- Ripple price came down 20% since the beginning of this week.
- With some upside today, bulls stand to face a bull trap that could get quite painful.
- A better entry point at $0.78 looks to be more promising for bulls.
Ripple (XRP) price could not withstand the correction that has gone through the cryptocurrencies this week. Several significant cryptocurrencies and alt-currencies were on the downside, with prices retreating to fundamental support levels. The bulls in XRP seem to have jumped the gun, not waited for any support level, and just caught a falling knife. A possible wash-out of buyers could happen as sellers are still very much in control.
XRP price is still in favor of sellers
This week, Ripple price has felt the weight of a downturn with a break of a significant green ascending trend line that has kept the bull run going throughout the summer. With the break of that trend line, sellers are very much in control, and bulls are looking for some good entry levels. With the reversal already today, that might have been just a tad too soon. The entry at $0.84 only goes back to August 6 and has not withstood any past tests or cannot give any proof of importance. It looks as if buyers have caught a falling knife, and the false break on the 55-day Simple Moving Average (SMA) at $0.95 could spell trouble for buyers that went in long in full conviction and full size.
XRP price risks turning into a bull trap now with buyers not able to push beyond that 55-day SMA. Price will reverse, and sellers will push XRP another leg lower toward $0.78. That might be a more exciting level. From the chart in XRP, the $0.78 level holds more importance than the $0.84 level. Originating from June 7, his level has shown quite a few tests from both upside and downside, making it a better historical element to keep in mind and could act as a better entry point for bulls to go in for a long.
XRP/USD daily chart
Ripple price thus looks to be heading first for another leg lower toward $0.78, before bulls really can take over from sellers and ramp up price action again in the cross-border currency. A kick-back to $1.05 looks to be the first port-of-call in the next bull run to unfold.
In case Ripple stays in the disfavor of investors, expect a forceful push lower toward $0.60. That brings XRP back to the region suitable for a fade-in over the longer term before price action will choose the upside again.
Like this article? Help us with some feedback by answering this survey:
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

Crypto bloodbath: $325 billion market cap vanishes amid selling pressure
The Kobeissi Letter reports on Tuesday a $325 billion wipeout in the crypto market capitalization since Friday. Additionally, Bloomberg reports that Citadel Securities, a firm with $65 billion in assets, is exploring a role as a Bitcoin and crypto liquidity provider.

Bitcoin edges below $90,000, ending its long streak of consolidation
Bitcoin (BTC) continues to trade in red, reaching a low of $88,200 during Tuesday’s early Europen trading session and hitting the lowest level since mid-November after falling 4.89% the previous day.

Shiba Inu holders unload 61.5 billion tokens in the last ten days
Shiba Inu price hovers around $0.000013 on Tuesday after dropping nearly 12% the previous day. Supply Distribution data shows that whale wallets have decreased SHIB holdings in the last ten days.

XRP eyes further downside as Trump to implement tariffs on Mexico, Canada, in March
Ripple's XRP joined the wider crypto market decline, plunging nearly 10% on Monday following President Donald Trump reiterating that the US will kick off tariffs on Mexico and Canada.

Bitcoin: BTC demand and liquidity conditions remain weak
Bitcoin price has been consolidating between $94,000 and $100,000 since early February, hovering around $98,000 at the time of writing on Friday. Despite this consolidation, US Bitcoin spot ETFs data recorded a total net outflow of $489.60 million until Thursday, hinting signs of weakness among institutional investors.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.