Completing This Bearish Pattern, Is XRP Price Revisiting $0.32 Mark?

Brian Bollinger
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XRP ripple

A bearish breakdown from the support trendline indicates the XRP price completes the bearish pattern i.e., inverted flag. This breakdown hints at the end of the recent recovery and the likelihood for the price to plunge lower. The chart shows a near-demand zone for XRP price at $0.36, will sellers breach it?

Key points: 

  • The falling volume during the recent growth indicates the recovery phase was temporary 
  • A bearish breakdown from an inverted flag pattern bolstered holders for a 14.5% drop
  • The intraday trading volume in the XRP is $371 Million, indicating an 89% gain.

TradingView ChartSource- Tradingview

Concerning the November first-half downfall and the second-half recovery, the daily XRP price chart showed the formation of an inverted flag. In theory, the recovery phase of the pattern is a short break period before the prior downtrend continues. 

This bullish pullback observes excessive selling and prepares to replenish the selling momentum. The support trend marked in the above chart act as a key neckline for the completion of this pattern.

The XRP price rose for around three weeks, using the ascending trendline as dynamic support. However, the ongoing uncertainty in the crypto market weakened the buyer’s confidence for the further rally, which breached the pattern’s support trendline.

Also read: XRP News: Whales Adding More XRP Amid Ripple Settlement Rumors

On December 11th, the XRP price fell 1.75%, and the red candle pierced from the mentioned trendline. Today, the sellers follow up on this breakdown and plunge 1.23% down to reach $0.37. 

However, the lower price rejection attached to the daily candle shows witness a minor retest by revisiting the ascending trendline or $0.38 as a potential resistance. Thus, the post-retest downfall may tumble the prices by 4% to reach $0.36.

Having said that, if the market condition didn’t improve, this technical setup could lead XRP below $0.36 support to reach $0.32.

Technical Indicator

EMAs: the XRP price is back below the crucial EMAs(20, 50, 100, and 200), accentuating an established downtrend. Thus, these EMAs may offer strong resistance to rising prices.

Relative Strength Index: A steep decline in the daily-RSI slope below the neutral line and 20-SMA indicates market sentiment favor further losses.

XRP intraday price levels

  • Spot price: $0.3766
  • Trend: Bearish
  • Volatility: Medium
  • Resistance level- $0.387 and $0.41
  • Support level- $0.36 and 0.32 
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.