XRP Price Prediction: Major Correction Ahead if Buyers Lose this Key Support
In the weekly time frame chart, the XRP price shows the formation of a cup and handle pattern. The chart setup often spotted at the bottom indicates a high probability of bullish reversal. As of now, the coin price trades at $0.59, and is forming the handle portion or pullback in the prevailing rally. Will this retracement lead to a fresh uptrend in the Fifth largest cryptocurrency?
Also Read: XRP Sideways Market Structure Extends – Can Shorts Turn Profitable?
XRP Price Analysis: Key Points
- XRP correction backed by decreasing volume reflects the buyer exhaustion
- The Crypto buyers can witness suitable demand pressure from the $0.56 support
- The intraday trading volume in the XRP is $1.6 Billion, indicating a 93% gain.
Source: Tradingview
For over a month, the XRP price has been in a correction phase, where the prices plunged from the June 13th high of $0.938 to a $0.58 low. This correction registered a loss of 37.6% loss and plunged to the 50% Fibonacci retracement level.
A 50% retracement level is considered healthy to absorb the excess supply pressure and stabilize the asset for higher levels. By the press time, this altcoin trades at $0.592 and hovers above the $0.58-$0.56 support zone.
The buyers should manage to sustain this level to recuperate the exhausted bullish momentum. A potential bounce back from $0.58 will bolster bulls for a 58% rally and challenge the $0.935 neckline resistance.
A breakout above the $0.935 neckline will give a better confirmation of trend reversal.
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Will XRP Extend Correction Trend?
Amid the increasing uncertainty in the crypto market, the XRP price could continue to consolidate above $0.58. However, considering a pessimistic approach, the sellers could give a breakdown below the mentioned support. With this breakdown, the coin price will also lose 61.8% FIB level, and bolster the price for a major correction to $0.426, or lower.
- Exponential Moving Average: The weekly EMAs(20 and 50) gathering near $0.56 could offer additional support to buyers.
- Directional Movement Index: A positive crossover state between the DI+(blue) and DI-(orange) slope reflects buyers hold enough momentum to trigger a bullish reversal.
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