- Ripple price slips below critical support as European equities drag.
- XRP price is set to shed at least 10% in the coming session as the sell-off picks up speed.
- Expect XRP price to shed around 18% and hit a 7-month low.
Ripple (XRP) price action is hurting investors and flashing red lights in financial markets. The biggest issue is that XRP price action is further selling off despite the Relative Strength Index (RSI) being firmly in the oversold zone. This means that sell-demand is so overpowering that bulls are getting out of the way and waiting for the drop to continue, to as far as the following substantial support level around $0.48, before they consider going long again.
XRP price scares investors out
Ripple price is penetrating below the monthly S1 support level at $0.58 and in the process looking to set a new six month low. As investors appear to be backing off, Ripple price action does not look likely to pick up anytime soon, although the RSI is trading firmly in oversold. The reason behind this is that XRP price action keeps selling off regardless of the oversold RSI, which is significant because it means that selling pressure is immense and could be linked to investors' divesting their positions.
XRP price will not see investors return to these levels anytime soon unless they reach a premium of $0.52 or even $0.48. Certainly, that last level would bring XRP price to a 7-month low which could trigger some investors to return to the scene for a lucrative buy opportunity. The RSI would be at the outer barrier of the oversold region by then, thus triggering some profit taking by bears, as they cover, reverting to the buy-side to close off their positions and book gains.
XRP/USD daily chart
Risk-off sentiment has come a long way and pushed several assets towards interesting low levels, which could trigger some buy-the-dip volume. This could accelerate into a U-turn in XRP price action without even having to tic test a fundamental support level as a prerequisite. This could mean that Ripple price jumps back above $0.63, and if that uptick continues systematically throughout the week, $0.78 could be quickly hit by Friday. This would set the scene for this weekend and next week as investors finally look beyond the short-term turmoil for longer-term upward potential.
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
Hedera price surges more than 25% following a spike in trading volume
Hedera price surges more than 25% on Monday after rallying 64% last week. The rally was fueled by Canary Capital, which submitted an S-1 registration to the US SEC for an HBAR ETF, offering investors exposure to the crypto asset’s price.
Robinhood CEO calls UK approach to crypto “backwards”
Robinhood CEO Vlad Tenev criticized the UK’s restrictive crypto policies, comparing them to regulated gambling. Concerns grow over crypto trading addiction, with a significant amount of traders relating it to gambling.
Bonk holds near record-high as traders cheer hefty token burn
Bonk (BONK) price extends its gains on Monday after surging more than 100% last week and reaching a new all-time high on Sunday. This rally was fueled by the announcement on Friday that BONK would burn 1 trillion tokens by Christmas.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC consolidates after a new all-time high
Bitcoin price consolidates between the $87,000 to $93,000 zone. Ethereum's price is nearing its support level of $3,000; a close below would cause a further correction.
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.