XRP Price Prediction: Panic as XRP Hangs At The Edge Of A High Cliff

By John Isige
Published March 10, 2021 Updated March 10, 2021
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XRP Price Prediction: Panic as XRP Hangs At The Edge Of A High Cliff

By John Isige
Published March 10, 2021 Updated March 10, 2021
  • Ripple is drawing closer to a rising wedge pattern breakdown.
  • Closing the day under the 50 SMA would validate the downswing to $0.4
  • Ripple must bring down the resistance at $0.5 to come out of the woods.

Ripple is holding between a crucial resistance and support as the Asian session gives way to the European session on Wednesday. The cross-border token has recently been rejected from $0.5, opening the Pandora box. At the time of writing, XRP is exchanging hands at $0.46 amid a potential breakdown to $0.4.

The news that Ripple has parted ways was calmly received by investors, perhaps because the company is fighting a vital lawsuit filed by the US Securities and Exchange Commission (SEC). The SEC took Ripple to court for allegedly selling unregistered tokens to investors and staying away from regulation for over eight years.

Meanwhile, the correction from the resistance at $0.5 is likely to be a ripple effect of the news that the blockchain company no longer collaborates with MoneyGram. The 4-hour chart has printed a rising wedge. This pattern has a bearish bias and come comes into the picture amid an uptrend.

The rising wedge reveals the bullish grip is getting exhausted while bears are preparing to swing into action. A rising volume characterizes a break under the pattern. Therefore, the breakdown tends to be rapid and must be timed accurately to make the most out of it.

For now, the least resistance path is downwards, especially with XRP losing both the 50 Simple Moving Average and the 100 SMA support. These broken anchor zones are likely to flip into resistance zones, making a recovery an uphill battle.

XRP/USD 4-hour chart

It is worth mentioning that the massive breakdown to $0.4 will fail to occur if XRP closes the day above the 50 SMA. Moreover, gaining ground above the 100 SMA will allow bulls to regain control and push past $0.5.

Ripple intraday levels

Spot rate: $0.45

Relative change: -0.025

Percentage change: -5%

Trend: Bearish

Volatility: Expanding

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Disclaimer
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.
About Author
John Isige
1154 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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