- XRP price has been consolidating for the past few weeks, unable to offer indicative moves in either direction.
- Ripple could be vulnerable to further losses as it continues to see obstacles ahead.
- Further selling pressure could spell trouble for XRP bulls, as the asset could be awaiting a 12% drop.
XRP price action has been muted in the past few days, with minimal clues as to directional intentions. Ripple has formed a declining resistance trend line since mid-June and could be expecting higher volatility following the period of stagnation.
XRP price weighed down by heavy resistances
XRP price has been forming lower highs, presenting a declining resistance trend line on the daily chart since June 21. Ripple has attempted to recoup losses from its monthly low on June 22 and has been trading sideways since. The squeezing of the Bollinger Bands suggests that a period of high volatility may be in store for the asset.
Ripple was unable to break above the 200-day Simple Moving Average (SMA), which has sealed XRP price in consolidation, struggling to find bullish momentum as trading volume has also tapered off.
The lack of buying pressure and the heightened resistance is spelling trouble for the bulls. The Ichimoku Cloud indicator that shows collective support and resistance levels indicates that XRP price is in a downtrend for the foreseeable future.
Further, the thickness of the cloud also represents the heavy resistance XRP price is facing, which may lock Ripple in a bearish trend.
XRP/USDT daily chart
Additional selling pressure and market-wide weakness may cause XRP price to retest crucial support levels before falling further. The 38.2% Fibonacci extension level at $0.62 is acting as support for Ripple.
However, it is likely that the token could drop to the 23.6% Fibonacci extension level at $0.58 as the recent rebound has channeled minimal interest. Speculators should also be aware of the impending death cross when the 50-day SMA intersects below the 200-day SMA.
Should further downward momentum emerge, XRP price is at risk of falling at least 12% into the demand zone, which ranges from $0.50 to $0.55.
On the flip side, to void the bearish outlook, XRP bulls would need to break above the aforementioned diagonal trend line to confirm accelerating interest. Ripple could aim to tag the 200-day SMA, which coincides with the 78.6% Fibonacci extension level at $0.74, if this bullish outlook transpires.
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
Editors’ Picks
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.
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%.
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.
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.
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.
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.