Connect with us

Ripple

Four reasons why XRP price will crash to $0.65

Published

on

  • XRP price has been on a steady downswing since September 7 and shows no signs of recovery.
  • The massive RSI divergence and 365-day MVRV seems to have played a pivotal role in this crash.
  • A retest of the parallel channel’s lower trend line at $0.84 or $0.77 seems plausible if the downswing continues.

XRP price set up a swing high on August 15 and breached this local top to create a new one on September 6. However, the second attempt failed as the market experienced massive selling pressure the next day. Now, Ripple is continuing to head lower with no signs of recovery. 

Technicals hinted at the crash two weeks ago

XRP price was on a roll as it rallied from $0.95 to $1.35 between August 13 and August 15. This run-up brought the uncertain and hesitant investors out of the woodwork as Ripple crashed 18% to $1 over the following weeks.

The greedy buyers pushed XRP price to set up a swing high at $1.41, well above the August 15 swing high at $1.35. While traders continued to leverage long XRP, the relative strength index (RSI) was forming a lower low during the August 15 and September 6 peaks, resulting in a bearish divergence.

This is perhaps one of the most important reasons why the XRP price collapsed massively on September 7. While this event coincided with El Salvador airdropping $30 worth of BTC to each of its citizens who downloaded a state-sanctioned wallet, the technical aspects were hinting at the overextended nature of the uptrend and suggested a crash was on its way.

Advertisement

As a result, the XRP price crashed 33% on September 7, and so did Bitcoin and most of the altcoins. Over the weekend, things seemed bullish as the market rallied higher, but this was an ephemeral event. 

XRP/USD 1-day chart

XRP/USD 1-day chart

The second and equally significant reason is the recent breakdown of a stable support floor. XRP price sliced through the demand zone ranging from $0.96 to $1.01 as markets dropped today. This stretch of barrier is crucial since it has been relevant since early April. Therefore, breaking below this will flip it into a formidable resistance level, preventing any short-term spikes in buying pressure to reclaim it.

Additionally, there is still a massive gap between the current position of RSI and the oversold zone, suggesting that the remittance token has not bottomed yet.

Advertisement
XRP/USDT 1-day chart

XRP/USDT 1-day chart

On-chain metrics add fuel to fire

The number of daily active addresses peaked at around 31,316 by the end of the first week of September. As XRP continues to decline, so does the number of investors interacting with the Ripple blockchain. 

On September 17, this metric created a lower high at 28,761, representing an 8.15% decline over the course of 11 days.

This decrease indicates that the market participants are uninterested in the prospects of XRP price right now and are likely converting/selling their holdings, leading to a downtrend.

Advertisement

XRP daily active addresses chart

In addition to technicals, the 365-day Market Value to Realized Value (MVRV) model also indicated that a sell-off was nigh. This fundamental index is used to identify the average profit/loss of holders who purchased XRP over the past year.

Before September 6, this number was extremely high at 86%, indicating that investors might book profit and hence cause a downswing.

Therefore, a decisive daily candlestick close below $0.96 will indicate a flip of this level into a resistance barrier. In such a case, market participants can expect the XRP price to sell off 12% to retest the $0.84 support floor. Here, the XRP price might retest the lower trend line of the parallel channel.

Advertisement

In some cases, exacerbation of the downswing might lead to a breakdown of this level and a retest of the next platform at $0.77, coinciding with the lower trend line of the parallel channel.

An increased selling pressure here might result in a crash similar to the one witnessed on September 7, knocking XRP price down to $0.65. 

This descent from the current position to $0.65 would constitute a 30% downswing.

Advertisement
XRP 365-day MVRV chart

XRP 365-day MVRV chart

On the other hand, if the remittance token manages to reclaim the demand zone ranging from $0.96 to $1.01, it will indicate the resurgence of buyers. A decisive close above $1.09 will serve as initial confirmation of the start of a new uptrend.

However, only a higher high above the September 6 swing high at $1.42 will invalidate the bullish thesis and kick-start a new rally. In this case, Ripple could continue to climb and tag the Fair Value Gap’s (FVG) upper limit at $1.60.

News Source

Advertisement

Ripple

Ripple Price Analysis: XRP spikes to $0.91, support found?

Published

on

  • Ripple price analysis is bullish for the rest of the day.
  • XRP/USD saw heavy selling earlier today.
  • Support found around $0.91. 

Ripple price analysis is bullish today as a strong lower low has been set at $0.91, with buying pressure returning right now. Therefore, we expect bears to be exhausted, leading XRP/USD higher later today.

Ripple Price Analysis: XRP spikes to $0.91, support found? 1
Cryptocurrency heat map. Source: Coin360

The market has seen strong selling pressure over the last 24 hours. The market leaders, Bitcoin and Ethereum, are down by 6.07 and 7.1 percent, while Ripple (XRP) has lost almost 9 percent.

Ripple price movement in the last 24 hours: Ripple breaks $1.02 support, finds support at $0.91

XRP/USD traded in a range of $0.9367 – $1.06, indicating strong volatility over the last 24 hours. Trading volume has increased by 35.61 percent, totaling $4.27 billion, while the total market cap trades around $44.745 billion, ranking the coin in 7th place overall.

XRP/USD 4-hour chart: XRP looks to reverse from $0.91

On the 4-hour chart, we can see slight rejection for further downside for the Ripple price as bears are exhausted after a strong selloff earlier today.

Ripple Price Analysis: XRP spikes to $0.91, support found?
XRP/USD 4-hour chart. Source: TradingView

Ripple price has seen consolidation in an increasingly tighter range above $0.102 support over the past week. The $1.02 mark was initially reached on the 18th of November after a strong decline from the $1.35 previous major swing high.

Despite the $1.02 support holding, further lower lows were set over the week, slowly building up pressure in the market. Yesterday, another lower high was set at $1.06, leading to more downside overnight.

Advertisement

Ripple price continued lower to $1.02 when a sharp break lower was finally seen over the past hours. Currently, XRP/USD has found low around $0.91, likely leading to recovery over the next 24 hours.

Ripple Price Analysis: Conclusion 

Ripple price analysis is bullish today as further downside currently gets rejected after a spike to $0.91 earlier today. Therefore, XRP/USD has likely found a new low, leading to a retracement over the next 24 hours.

While waiting for Ripple to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.

Advertisement

News Source

Continue Reading

XRP

XRP holds key support while indicators point to short-term recovery

Published

on

  • Ripple started a recovery wave above a key support level of $1.024. 
  • XRP price started an upside correction as indicators suggest a short-term recovery.
  • The coin may initiate a fresh downtrend upon a breakout of the $1.024 support level.

XRP is in the process of forming a triple bottom price pattern boding more upside, for the pair priced against the US dollar., XRP price recently found support at the pattern’s base during the formation of the third bottom. Now, Ripple is at a crossroads – a spike in selling pressure may drive a bearish breakout, whilst technical indicators signal a bullish reversal. It all depends on whether or not a critical support level holds. 

XRP rejected above the triple bottom at $1

XRP has found support above $1.024 and started a bullish recovery similar to peer altcoins. The XRP price has found footing at the $1.024 level for the third time making it a triple bottom pattern.

If there is increased demand at the current price level it will push the XRP price towards its double top level at $1.108. However, the 20 and 50-period exponential moving averages may act as minor hurdles at $1.076 and $1.108. 

The MACD has closed the first histogram above the 0 mark, indicating a bullish reversal. While the RSI is still holding at 44, a crossover above 50 may encourage investors to go long. In that case, the XRP price might spike towards $1.165. Additional gains could lift the price towards the next key hurdles at $1.218 or $1.284 

Advertisement
 Ripple 12-hourly chart - Triple bottom to drive uptrend

 XRP 12-hourly chart – Triple bottom to drive uptrend

If XRP disappoints to start a new spike above the $1.081 level, it could extend losses. Initial support on the downside is near the $1.024 level.

The upward trend that started on September 21 also extends to significant support at the $1.024 mark. Therefore, a break below the $1.024 support level might push the price further down. The next critical support level is near $0.963, below which the price may fall to the $0.888 level.

News Source

Advertisement
Continue Reading

XRP

XRP price consolidates as Ripple bulls eye a 15% run-up

Published

on

  • XRP price is hovering above the $1.01 support level, anticipating a potential retest before an upswing originates.
  • A breakdown of this level could lead to a buy opportunity at $0.98 before Ripple rallies to $1.17.
  • A daily close below the $0.92 foothold will invalidate the bullish thesis.

XRP price has been on a downtrend for roughly two weeks and shows that a short-term reversal could be near. Market participants need to watch for two immediate support levels that are likely to facilitate this bullish outlook.

XRP price to pull a 180

XRP price has dropped roughly 23% since November 10 to where it currently trades – $1.04. The downswing is likely to retest the $1.01 support floor formed by the November 18 swing low. This will create a triple tap setup, suggesting that a short-term reversal in momentum is likely. 

In this scenario, the XRP price could attempt to retest the 50% retracement level at $1.17. This run-up would constitute a 15% ascent from $1.01.

While this scenario makes sense, a breakdown of the $1.01 support floor will suggest that a further downswing is possible. However, this move does not invalidate the bullish thesis but provides investors with a buy opportunity at $0.98. Investors can expect a bounce off this level to propel XRP price to the same level as before at $1.17. This move would constitute a 19% climb.

Advertisement
XRP/USDT 4-hour chart

XRP/USDT 4-hour chart

While things are looking up for the remittance token, a breakdown of the $0.98 support level will create a lower low and invalidate the bullish thesis. This move would also suggest a weakness in buying pressure and set the stage for further losses. In this situation, market participants can expect XRP price to drop by about 6% to $0.92.

News Source

Advertisement
Continue Reading