XRP Price Prediction: Has the recent rebound shifted the bearish narrative?
- XRP price dumped 10% early Thursday morning before rising 10% shortly after.
- The Relative Strength Index breached historical oversold territory.
- Invalidation of the bearish thesis is a breach above $0.56.
XRP price witnessed an extremely volatile market behavior amidst the US Consumer Price Index release. Key levels have been defined to determine the next trending direction.
XRP price dumps and pumps
XRP price is rebounding rather impressively on Thursday, October 13. The digital remittance token, which plunged 10% in the wake of the US Consumer Price Index announcement, experienced the sharpest decline among the top 3 cryptocurrencies. On shorter time frames, the Relative Strength Index entered historically oversold territory, followed by the stunning countertrend surge.
After dropping to $0.44, the XRP price is currently trading at $0.48. The bears broke both the 21-day simple moving average (SMA) and the 8-day exponential moving average (EMA) during the downturn, and a retracement into the 21-day SMA occurred hours later.
XRP/USDT 3-Hour Chart
Still, the uptrend rally may be a short squeeze and entering the market post-rally could be very problematic. If the $0.56 level is left unchallenged, traders should expect a decline toward $0.40.
Thus, this thesis remains bearish until the $0.56 swing high is breached. If the bulls manage to hurdle the swing high, a rally toward the $0.61 liquidity levels will be back in the cards, representing a 32% rise from the current XRP price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
