- Ripple price is under pressure since the sell-off in Bitcoin accelerated the downtrend in XRP.
- XRP already holds 25% of losses in just six trading days.
- As the RSI trades into the oversold area, expect bulls to be interested in starting buying into the dip.
Ripple (XRP) price was already on the back foot at the beginning of last week, even before Bitcoin tanked over the weekend and the flash crash only accelerated the correction in XRP price action. As losses mount towards 25%, investors are starting to look for being part of the price action as the discount becomes very attractive. The correction may still have some room to go, but the buyers stand ready to step in at $0.70 or $0.62 for a fade-in trade and run price back up towards $1.05.
XRP bulls are ready to pump prices
XRP price got rejected last week at $1.05 and saw bears taking the overhand, running price action below the 200-day Simple Moving Average (SMA), which already labeled XRP price action as bearish and in a downtrend. The move over the weekend with Bitcoin only accelerated that move and moved forward the price target of $0.78 with the monthly S1 support level. With that acceleration, the Relative Strength Index (RSI) overheated and traded in the oversold territory.
Although XRP still looks heavy and has more room to go, a few key levels are starting to be put on the bulletin board of investors where XRP price action could see them stepping in and start buying everything in sight. One level is the blue descending trend line from mid-August, which has been very well respected and has already triggered a bounce off throughout October. Expect the blue trend line to do the same again, this time around $0.70.
XRP/USD daily chart
In case the bounce off does not do the trick, expect the support between $0.62 – $0.58 to do the trick as that last one falls in line with the monthly S2 and should attract more buyers as the RSI will need to cool down and trade back towards the more average 50 level. If Bitcoin tanks further and keeps fueling the spillover effect that is acting as a headwind, expect a possible break below $0.52, opening the door for another push towards $0.30 with the monthly S3 support level as the end of the line.