- XRP price prints a sneaky bearish divergence pattern on the daily chart.
- Ripple price retraces the historical trend with an uptick in transactions on the Volume Profile Indicator.
- Invalidation of the macro bearish outlook remains a breach above $0.48.
Ripple price prints a sneaky bearish divergence pattern that should not be taken lightly.
The ripple price looks dicey
Ripple price shows reasons to remain concerned. On July 26, 2022, a warning was issued as the Ripple price was rejected from a historical trend line dating back to April 2021. The classical price action signature resembles textbook catalyst makers. Based on Elliot Wave and Fibonacci projections, a $0.24 target has been forecasted.
On July 27, the Ripple price retraced the historical barrier with an uptick in volume and a huge bullish engulfing candle. Additionally, a 3-day morning star pattern is displayed on the daily chart, which will entice traders to look for bullish targets above.
XRP price currently auctions at $0.34. The main concern surrounding the digital remittance token is where it lies in terms of a macro count. Ripple price is still in a steep downtrend since April of 2021 and has not retraced 38-50% of the decline.
XRP/USDT 1-Day Chart
Everyone wants to catch the bottom in hopes of maximizing profits on the ride back up. There is no doubt that Ripple’s XRP token will be a $2.00, $5.00 and even $10.00 token someday. But right now, the move is still quite dangerous and can severely damage one’s opportunity cost.
On June 26, the Relative Strength Index confounds this idea very subtly. The bearish divergence spotted between June 24, and June 27 should not be taken lightly. If the technicals are correct, a steep decline will be the only way to resolve the divergence unless the Ripple price can rally through the macro invalidation point at $0.48. This scenario may be too risky for long-term investors. Staying sidelined and missing out on the initial 30% rally towards $0.48 is justifiable.
XRP/USDT 1-Day Chart
Subtle bearish divergences on the daily chart are usually the last chance before sharp liquidations occur. $0.24 is the first target, but the XRP price could continue in an extended decline targeting $0.17 for up to a 50% decline in price.
Bullish targets based on the morning star pattern should be considered short-term plays as the risk of a sharp decline will remain in the cards until $0.48 is breached.
In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market. -FXStreet Team
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
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.