Here’s Why XRP Price Could Extend Correction Trend; Back to $0.6?

For over a week, the XRP price resonated in a narrow sideways trend limited between two converging trendlines. This consolidation came after a massive rally on July 13th and was meant to stabilize the price trend and prolong the bullish trend. However, a breakdown from the pattern’s support trendline indicates, the 4th largest cryptocurrency would need longer correction.

Also Read: XRP Price Plummets 5% in 24 Hours – Is This The End of The Road for Bulls?

XRP Price Daily Chart:

• A support trendline breakdown set the XRP price for a 10% drop
• The $0.669 support stands as a strong demand zone for the XRP price
• The intraday trading volume in the XRP is $1.87 Billion, indicating a 27% gain.

Source: Tradingview

In the 4-hour time frame chart, the XRP price showcased the recent consolidation as the formation of a pennant pattern. However, on July 22nd, the coin price gave a bearish breakdown from the pattern’s support trendline.

A bearish outcome from a bullish pattern is a strong sell signal indicating a potential downfall in the near future. By the press time, the XRP price trades at $0.74 with a gain of 1.32%. This bullish uptick could retest the breached trendline to check price suitability for lower prices.

This post-breakdown fall could tumble this altcoin market value 9.5-10% down to hit $0.669. 

Will XRP Price Plunge Back to $0.6?

The XRP price potential downfall to $0.669 would face strong support as aligned with the 50% Fibonacci retracement level. In technical analysis, a correction of 50% is still considered healthy and suitable to resume the prevailing bullish. However, a breakdown from this support plunged the price by 8.6% and tested the combined support of $0.6 and 61.8% FIB.

• Exponential Moving Average: The 20-day EMA at $0.669 increases the support strength of this level.
• Directional Movement Index: A significant gap between the positive crossover state of the DI+(blue) and DI-(orange) slope indicates the bullish momentum is intact.