While XRP Army keeps stating higher and higher price predictions on every chart, the fundamentals signal an oncoming crash on XRP’s price towards the dreaded $0.10 USD mark. Are bulls up to task to challenge the charge by XRP bears?
Since the explosive bull run in 2017 that saw XRP cross over $3 dollars from less than a cent in months, the price of XRP has been in a constant downfall –apart from sporadic bursts in mid-2018. In 2019, the crypto market exploded as XRP peaked at $0.51 USD across major exchanges keeping investors hopeful for a possible bull run. However, since July XRPUSD bears have picked up their strength pushing the price to a mere 21 cents a token and the selling pressure looks set to continue in 2020.
XRPUSD signals an upcoming 50% loss
Looking at the long timeframe charts, XRP/USD scares a drop towards the $0.13 USD support levels if bulls strength keeps weakening in the market. On the weekly charts, bulls have lacked enough strength to push the price above the resistance level of the bearish channel formation on the weekly charts despite testing the resistance level since early November.
The sideways movement of XRP/USD in the past few weeks signals a major break on either side with bears showing greater determination to set the price in a downtrend.
Why XRP may fall towards the $0.13 USD mark
There are a couple of factors that keep XRP in the selling zone and a number of these factors including market factors, selling pressures by Ripple and the inevitable XRP FUD that gets past around through crypto communities.
An oncoming bull trap
The price of XRP has been set to break above the bearish channel resistance for weeks now but the persistent low trading volumes on the pair signals an oncoming bull trap. Adding on, the relative strength index (RSI) is currently oscillating above the oversold region showing bears strength is yet to die out.
After crossing the 20 MA line, XRP bulls seem to be ready to take over the market but only for a short time. A break above major resistance level at $0.51 will be key to unlock a bull market. If bulls are to push the price above the resistance level, volumes will need to increase significantly in order for bulls.
Cyclical Time Frames with $XRP.
You guys have seen me post this chart before but now I have added cyclical time frames to paint an even clearer picture.$XRP follows cycles of 6 months to 1 year Bull Cycles followed by 2 year Bear Cycles. 2020 will be the next Bull Cycle. $28 pic.twitter.com/P5ZfAgPfF4
— D.I.Y Investing (@vajolleratzii) December 15, 2019
Since hitting $10 billlion USD in daily traded volume at the end of November, XRP traded volume has dipped to $1.1 billion as at time of writing, Coinmarketcap data shows. A failure to increase the daily traded volumes threatens a bull trap which gives sellers the ability to push the price to lower support levels towards $0.13 USD.
A quarterly “selloff” by Ripple
If 2019 was anything to go by, Ripple chiefs are not afraid to set the price burning in a bid to redistribute the massive amounts of XRP they hold. If Ripple continues its quarterly dump on the market through 2020, things may get worse for the digital asset as market reaction remains poor on these dumps.
Is ripple broken?
Price has been literally flat for the past 8 week – it did break a key resistance imposed two years ago with NO reaction
?️@bgarlinghouse maybe you want to dump a few more tokens on the market?
"Making volatility great again" pic.twitter.com/ruiBzHkLdu
— TEDDY ⛓️? (@teddycleps) December 16, 2019
With the selloffs set to continue in 2020, the price of XRP risks to fall further.
Can bulls hold on?
The hopium around the XRP Army however keeps XRP alive as bulls looks for a reversal point as price squeezes between the support resistance levels of the bearish wedge channel. A break above resistance does not however fully confirm an oncoming bull run meaning bulls should be set to increase volumes to push the token’s price higher.
For the moment however, XRP/USD remains on edge staring at a 13 cents valuation possibility