- A pullback to $0.64 would represent a buying opportunity before Ripple rises to $1.17.
- A close below the $0.92 support will call into question the bullish thesis.
The XRP price has been downtrend for over two weeks, implying that a short-term reversal may be approaching. Market participants must watch two near support levels that are likely to assist the bullish view.
XRP price to pull a 180
The price of XRP had dropped approximately 23 percent since November 10, when it was trading at $1.60, to where it is now – $1.04. On the other hand, a retest of the $1.01 support floor set by the November 18 swing low is a distinct possibility. It will result in a triple tap setup, suggesting that short-term momentum may reverse soon.
In the example above, XRP’s price may try to retake the $1.17 50% retracement level. From $1.01, this rise would be a 15 percent increase.
However, a breakdown of the $1.01 support level might suggest that a further decline is on the way. However, the pivot isn’t pointless; instead, it serves as an entry point at $0.98. The XRP price is expected to rebound off this level and return to $1.17, where it was previously. This increase would add 19% to the value.
A breakdown of the $0.98 support level, on the other hand, will generate a lower low and negate the bullish thesis. Given Friday’s action, a decline of 6% in the XRP price is not out of the question. It also suggests a lack of demand and sets the stage for more losses. Market participants can anticipate that the XRP price will drop by around 6% to $0.92 in this scenario.
On Thursday, Ripple’s XRP climbed by 1%. Yesterday, Ripple’s XRP dropped 3.19%, with the price ending at $1.0435, partially reversing a 3.19 percent loss from the previous day.
Ripple’s XRP began the day with a rough start, falling to a late morning intraday low of $1.0235 before making gains.
Ripple’s XRP rose to a late afternoon intraday peak of $1.06344, avoiding the first significant support level at $1.0031 by rally.
However, Ripple’s XRP declined to end the day at lower levels, failing to reach the 38.2% Fibonacci retracement of $1.0659 and the first significant resistance level at $1.0695.
Ripple’s XRP is currently trading at $1.0458, up 0.22 percent from yesterday’s opening price of $1.0278. Ripple’s XRP rose to a morning high of $1.0463 before falling to a low of $1.0454 over the day.
On Tuesday, Ripple’s XRP had not yet tested the direct support and resistance lines.
For the day ahead
Ripple’s XRP must overcome the $1.0435 pivot to clear the first significant resistance level at $1.0635, as well as the 38.2 percent FIB of $1.0659, to play out towards potential support around $0.5065 and resistances above that.
However, Ripple’s XRP would need support to break out from its Thursday high of $1.0634.
The first major barrier level and 38.2% FIB will likely cap the upside if an extended crypto rally does not occur.
Ripple’s XRP may attempt to resist at $1.10 levels before any pullback in the event of a broad-based crypto rally. The second significant barrier is $1.0834.
A breakdown below the $1.0435 support level would put the first significant support at $1.0235 into play.
It was just six weeks ago that Ripple’s XRP dipped to over $0.80 before quickly recouping all of the losses and then some, thanks to a significant number of new buyers from Asia who were drawn into the cryptocurrency market by its recent price surge. The XRP/USD pair has already bounced back from these levels.
Looking at the Technical Indicators
The first primary support level is $1.0235.
Pivot is at $1.0435.
The first significant barrier level is $1.0635, which was the previous high on June 12.
$0.4469 is the Fibonacci Retracement Level, which works out to be roughly 23.6% of the total rise since the low that occurred on July 22.
$1.2017, $1.0050/400 SMA(38) Retracement Level: $1.0659
The FIB retracement level is $1.4096, which equals to the 61.8% Fibonacci Retracement Level.