Here’s Why XRP Price Is at Risk of Losing $0.5 Support
Highlights
- Amid the formation of a bearish double-top pattern, the XRP price is at risk of falling to $0.48.
- The coin price challenges the upper boundary of the Bollinger Band indicator.
- The intraday trading volume in the XRP is $1.7 Billion, indicating a 7.2% loss.
The ongoing rally in the sixth largest cryptocurrency XRP witnessed a major roadblock at the $0.575 barrier. The long-wick rejection at this barrier reflects the overhead supply and the formation of a double-bottom pattern. The broader market sentiment continues to invalidate the buyer’s attempt and trigger a consolidation in several major altcoins. Will the BTC price reversal from $52K, plunge the XRP price back to $0.5?
Also Read: Ripple XRP Case Update: Financial, ODL Details Will Remain Sealed Until SEC Remedies Brief
Is XRP Price Heading to $0.5
The February month recovery in XRP price can be traced using a support trendline in the daily chart. From the last swing low of $0.485, the coin price will surge 14.5% to reach the current trading price of $0.55.
The coin price rebounded thrice from this support reflecting that the buyers continue accumulating this asset at dips, one of the key aspects for establishing recovery. However, the rally faces a minor road at $0.576 resistance, projected by a daily candle with long wick rejection.
The two reversals from this resistance indicate the possibility of a double-top pattern. This chart pattern often spotted at the major top indicates the XRP price may enter a new correction amid the weakening bullish momentum in BTC.
Currently trading at $0.55, the XRP price is down 1.46% and teases a breakdown below the $0.541 neckline support. A successful bearish breakdown will also pierce the support and intensify the selling momentum.
A post-breakdown fall may have plunged the XRP coin by 12% to hit $0.48.
Conversely, if the support trendline holds, the buyers may rechallenge the overhead resistance trendline to initiate a fresh rally
Also Read: XRP Whale Offloads 26 Mln Tokens As Ripple’s Extended Deadline Nears
Technical Indicator
- Bollinger Band: The midline of the Bollinger band indicator will act as additional pullback support for buyers,
- Moving Average Convergence Divergence: A bullish crossover between the MACD and the signal line indicates the current recovery is still intact.
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