Following recent drops across the market, XRP halted buying and saw an 8% correction in the past week. It found a temporal support this week and now remained calm above it. More bleeding is likely if the support cracks.
Earlier this month, XRP tapped $0.73 and held it as resistance after rising by roughly 50% in a month. It initiated a drop and formed a bull flag pattern – inside a symmetry triangle.
On Monday, the price surged above the symmetry triangle to exactly $0.75, taking out several stop-loss on a false break. That single action led to the liquidation of millions of dollars of short positions on the futures trading.
It closed that day with a long wick and cracked down to the low of $0.59. It rejected that low and recovered slightly above the key $0.6 level, where it has been calmly trading for the past two days. More drops could surface if the selling volume increases.
On the other hand, if the bulls step back to act upon the immediate support level, the price is likely to bounce back. However, it must flip the previous high to confirm a bullish continuation in the short term.
XRP is technically bearish on the daily chart. A drop below the $0.45 level could trigger a massive crash from a mid-term perspective. But currently, the asset looks indecisive with a daily 1% loss.
XRP’s Key Level To Watch
If the price breaks below the weekly $0.59 low, the immediate support levels to consider for drops would be $0.55, followed by the $0.50 level.
Inversely, a bounce above this week’s low could bring recovery back to the $0.674 and $0.73 resistance levels. A push above those levels could trigger more buys towards $0.77, $0.80 and $0.85 in no time.
Key Resistance Levels: $0.674, $0.73, $0.77
Key Support Levels: $0.59, $0.55, $0.50
- Spot Price: $0.60
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.