- Ripple price fell by 35% in November and recovered half of the losses within 24 hours during the initial US CPI-induced relief rally.
- XRP shows RSI divergence between lows since June 13, hinting that price may be confined to trading within a wide range.
- Invalidation of the bullish scenario is a breach below $0.2936.
XRP price has produced higher lows after every liquidation since June 13. This subtle evidence suggests XRP could be confined to a wide range for weeks. Key levels have been identified to help traders identify profitable scenarios.
XRP will be a challenge
XRP's recent rejection from the $0.50 barrier went far lower than expected. As a sideways triangle formed near $0.50, the technicals showed promising breakout potential. Unfortunately, the optimism was swept away during the second trading week of November as the digital remittance token fell by 35% and invalidated the bullish symmetrical triangle that investors were hoping for.
XRP price currently auctions at $0.38. On November 10, the bulls pulled off an 18% recovery rally, establishing a large bullish engulfing up-bar a few integers short of the $0.40 price level. The Relative Strength Index (RSI) shows the November 9 low at $0.3160 as more oversold than the June 13 bottom at $0.3012. This subtle piece of information suggests XRP has underlying strength and could be the catalyst to challenge recently established shorts in the market.
XRPUSDT 1-day chart
XRP price could trade between $0.32 and $0.56 in the coming weeks. Now that the triangle thesis, which projected a rally to the $0.60 zone, is invalid, expecting the unexpected could lead to rewarding gains for patient, healthy risk-taking investors. Liquidity levels as high as $0.66 could face a challenge if the bulls can reconquer the $0.50 zone, but traders should take things one step at a time.
If the market has bullish potential, the June 13 low at $0.30 will need to remain intact. A further decline toward 2020 liquidity levels near $0.26 could occur if the lows are breached. Such a move would result in a 35% decline from the current XRP price.
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
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.
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.
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.
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.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
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.