- Ripple prices made a false breakout yesterday drawing in many investors who woke up this morning with mounting losses.
- XRP price action looks heavy this morning as investors reassess the situation in current markets.
- With price action back into the pennant, expect a possible bearish tone and a possible nosedive below $0.78.
Ripple (XRP) price hurt investors yesterday after shooting above the 200-day Simple Moving Average (SMA) at $0.95, only to then fall back down again soon after The breakout lured many bulls in but in the late US session price collapsed, and XRP fell back into the pennant price pattern. After what seems to have been a bull trap investors are likely to cut their losses leading to an accelerated move down towards $0.62, should support at $0.78, not hold.
XRP sees bears seize control again leading to possible 25% devaluation
XRP price had a strong case for a bullish outbreak yesterday, and investors jumped on the back of a breakout of a pennant in two phases - firstly when it exited the pennant and then when it broke above the 200-day SMA. But price action collapsed in the late US trading session, hurting traders who had got in at the 200-day SMA. Now XRP price looks to be on its way down to the bottom of the pennant, leading to even more bulls fleeing the scene and cutting their losses..
XRP will likely see buying activity dry up as bulls sell their positions on the way down, near $0.78. A historical pivot level and the monthly S1 support level should provide some support at that level. If XRP price breaks below there, expect an accelerated move to the downside as more and more investors try to sell their stack in Ripple coins, in an attempt to get out of their losing positions.
XRP/USD daily chart
Once below $0.78, there is not much in the way of support, so expect a quick nosedive towards $0.62, – the first element of support where bears might start to take profit. Depending on general cryptocurrency sentiment, expect possibly even a dip further towards $0.58. The only way this nosedive correction could be avoided could be, for example, if the US inflation print this afternoon surprises to the downside, which would lead to a sigh of relief among investors, and potentially result in a bullish knee jerk reaction back to $1.05.
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.