Ripple Price Analysis: Approaches Five-month Low; No Ray Of Light for XRP?

By Rekha chauhan
May 6, 2022 Updated May 6, 2022
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XRP price started the session on a higher note but failed to retain the gains. The upside momentum vanished quickly with a sharp reversal in the price. The immediate upside hurdle near $0.65 acted as a strong resistance barrier for the XRP buyers. Today is the single largest fall in XRP price in the past one week or more. A big red candlestick indicates no immediate bounce-back could be expected.

  • XRP price trades lower with significant losses on Thursday.
  • Selling momentum extends the downside momentum erasing all the previous gains.
  • A daily candlestick below $0.55 would trigger a fresh round of selling in the asset.

XRP price remains vulnerable

Source: Trading view

On the daily chart, the XRP price has a roller coaster ride in today’s session. In April the token depreciated by almost 35%. The downward momentum pushed the price near to the multi-month lows as the selling momentum still continued in May. In addition to that, the price is exposed to further downside risk as the 50-day SMA is still making the recovery a challenge for the asset. The major support area belongs to $0.55, rupture below may lead to an additional drop in price.

Now, a steep fall in XRP price is awaited as the higher volume along with big red candlestick ensures a break of long-standing support of $0.55 with an eye on $0.40.

On the opposite side, a rebound in the investor’s bullish sentiment could push the price higher. But the price must face $0.65 to retest the 50-day EMA (Exponential Moving Average) at $0.71.

The daily Relative Strength Index (RSI) fell below 40 sharply, indicating the activeness of bear’s in XRP. A heavy volume from a higher zone could drop the asset further lower.

As of publication time, XRP/USD is trading at $0.58 down 9.85% for the day.

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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