- XRP price is lagging behind other cryptocurrencies as Bitcoin has long since begun its rally recording higher highs.
- The bulls’ inability to push prices higher resulted in XRP price crashing 10% on October 18.
- However, a crucial indicator suggests that Ripple may have recorded a local bottom.
XRP price has crashed 14% from its swing high at $1.18 recorded on October 16, tagging the downside trend line of the prevailing chart pattern. While Ripple (XRP) was at the edge of dropping below $1, a key technical indicator hints that the swing low may have set the local bottom for the time being.
XRP price prints local bottom
XRP price has been locked within a descending parallel channel on the 4-hour chart, as Ripple continues to record lower highs and lower lows. Although the token is sealed in a consolidation pattern, the Momentum Reversal Indicator (MRI) has flashed a bottom signal, suggesting that it is ready for a move higher.
The technical pattern suggests that Ripple could oscillate between the upper and lower boundaries of the channel before revealing bigger directional intentions. Following the drop toward the downside trend line of the chart pattern, XRP price would likely tag the topside trend line at $1.17 next.
The first obstacle for XRP price is at the middle boundary of the prevailing chart pattern at $1.09, coinciding with the 100 four-hour Simple Moving Average (SMA). Another hurdle will emerge at the 50% Fibonacci retracement level at $1.13, which sits near the 20 and 50 four-hour SMAs.
The last roadblock may materialize at the resistance line given by the MRI at $1.14 before XRP price is able to tag its short-term bullish target at $1.17. Should a spike in buy orders materialize, Ripple may slice above the parallel channel, tagging the 61.8% Fibonacci retracement level at $1.19. If the bulls manage to flip this level into support, the token may aim to target $1.28, where the breakout line, 78.6 Fibonacci retracement level and the declining resistance trend line meet.
XRP/USDT 4-hour chart
However, should selling pressure increase, XRP price may retest key support levels before revealing targets on the upside. The first line of defense for Ripple is at the 38.2% Fibonacci retracement level at $1.06, coinciding with the support line given by the MRI.
Additional lines of defense may emerge at the 200 four-hour SMA at $1.04, then at the ascending support trend line that formed since July 20 at $1.03. Slicing below this multi-month foothold could spell trouble for the bulls, but the last leg of support will appear at the downside trend line of the parallel channel at $1.01.
Until Ripple bulls can break above the governing technical pattern, the token may continue to trend lower until XRP price reveals decisive directional intentions.
XRP explodes more than 44% from flash crash lows, move to $2 upcoming
- XRP price was annihilated during the Saturday flash-crash.
- Massive recovery post-sell-off is likely a sign of reversing fortunes for XRP.
- Follow through by bulls necessary to regain momentum higher.
XRP price action was sitting on the precipice of an impending flash-crash long before Saturday’s sell-off occurred. The price levels XRP hit for the lows were expected as well. A new uptrend for XRP is likely to start next week.
XRP price collapsed from $0.92 to $0.57 but managed to close at $0.85
XRP price is positioned for a massive rally post-flash-crash. The daily and weekly candlesticks have likely developed one of the most substantial bear traps in XRP’s history. FOMO will be piling into this cryptocurrency very soon, especially if XRP returns to the $1.00 value area.
Because XRP has already triggered the price levels previously forecasted, the move has been made, and XRP can begin its next leg higher. To do that, XRP price must first close at or above the daily Kijun-Sen at $0.98. To achieve an undeniable bullish breakout, XRP needs a daily close at $1.21. If $1.21 is reached, the projected target range is the $2.00 value area, followed by the $3.35 price level.
XRP/USDT Daily Ichimoku Chart
However, downside risks remain. XRP has the cloud of Ripple’s SEC debacle hanging over it, and any hints of continued uncertainty or a negative outlook for Ripple may weigh heavily on how XRP trades. The downside risk for XRP price is the 2021 Volume Point Of Control at $0.45.
Ripple’s XRP Price Prediction in 2022 Based on a Crypto Analyst Report
Ripple (XRP) is one of the oldest coins in the crypto space with the most insane rumors going around according to the crypto analyst, Michaël van de Poppe. He says he believes XRP will definitely have a big run as it did back in 2017.
He adds that XRP does not want to be just a payment system, it is building its own smart contract with a goal to create side chains and NFTs. He says that as the Ripple-SEC lawsuit is still in progress, he is very much interested to know what the outcome will be.
He adds that he expects the lawsuit to come to an end in no time and if eventually it does, it could trigger the market to start hitting up again. Although, there are possibilities that it will not.
Michaël explains that the SEC lawsuit against Ripple was a result of price manipulation on the side of Ripple and insider trading. He affirms that XRP has made many millionaires back when it had a big run back in 2013, and another explosive between 2014 to 2015. But since 2017, it has not been doing too much except for fights on social media, criticism, negativity, and toxicity.
As per Ripple’s price action, Michaël says that the XRP market has been correcting for the past 4 years and it is facing a potential breakout once again. He continues that any reasonable target for XRP to rise in the market if a bull circle ensues will shoot up the price up to $2.87 and $4.33.
With this said, despite the current bear position of XRP in the past few days, some traders are still affirmative about a bull happening soon. At press time, XRP is up 6.83% and 0.8317 in the last 24 hours.
Ripple Price Analysis: XRP finds resistance at $0.85, a test of downside to follow?
- Ripple price analysis is bearish today.
- XRP/USD recovered 44 percent from the previous low.
- Resistance was found at $0.85 overnight.
Ripple price analysis is bearish today as we expect another test of downside to follow after a strong retracement to $0.85. Since XRP/USD has formed consolidation overnight, we expect bulls to be exhausted, leading to another move lower later today.
The overall market traded in the green over the last 24 hours as the market recovered from the strong selloff on Friday. The market leader, Bitcoin, gained 3.53 percent, while Ethereum 6.85 percent. Terra (LUNA) is the top performer, with a gain of almost 40 percent.
Ripple price movement in the last 24 hours: Ripple recovers to $0.85, starts to consolidate
XRP/USD traded in a range of $0.7545 – $0.8638, indicating strong volatility over the last 24 hours. Trading volume has declined by 37 percent, totaling $3.78 billion, while the total market cap trades around $38.74 billion, ranking the coin in 8th place.
XRP/USD 4-hour chart: XRP looks to test downside today?
On the 4-hour chart, we can see the $0.85 mark preventing further upside over the past hours, likely leading to a retest of downside later today.
Ripple price has seen a steady decline over the last weeks. From the previous major swing high at $1.35, XRP/USD has retraced over 55 percent to the $0.59 low, indicating that we might see a major reversal soon.
However, for now, the overall market structure is still bearish as we saw a strong drop lower on Friday. Support at $0.59 offered strong support, leading to a quick rejection higher Yesterday.
The Ripple price action found resistance at $0.85 as it recovered over 40 percent by the end of the day. Overnight, XRP/USD consolidated, indicating we should see a reversal back to the downside later today.
Ripple Price Analysis: Conclusion
Ripple price analysis is bearish today as we saw the $0.85 slow down the recovery. Therefore, XRP/USD is likely ready to test downside again, likely leading to a higher low set.
While waiting for Ripple to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.