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What is the current state of XRP’s price action?

Key Takeaways

What are the different timeframe charts telling traders?

The weekly XRP chart showed a retracement was underway, while the daily and 4-hour charts showed a bearish structure and momentum for the altcoin.

What could the next XRP price trend be?

A drop below $2 in the coming days would start another wave of selling, sending prices to $1.9 and $1.61.

Ripple [XRP] was in a retracement phase and has fallen an additional 19% since the 27th of October.

A recent AMBCrypto report captured how the late buyers were carrying most of the stress from this retracement, and were underwater as a result.

A falling NVT ratio signaled that the asset was undervalued compared to the volume transacted onchain. But this was little solace to buyers, and the price action showed bears were still in control.

XRP 1-week ChartXRP 1-week Chart

Source: XRP/USDT on TradingView

The weekly chart showed some interesting facets to the XRP price action. To begin, the swing structure on the weekly was still bullish. These swing points were highlighted in green at $0.486 and $3.4.

A higher low at $1.61 has emerged — this is the level that bears must breach to shift the weekly structure bearishly.

The Fibonacci retracement levels plotted using the most recent impulse move on this timeframe revealed a warning sign for long-term bulls. The $78.6 retracement level at $2.28 was lost to the bears.

The RSI has slipped below neutral 50, signaling that downward momentum is now dominant. The OBV has not fallen significantly, but that was only a minor point in favor of the bullish argument for XRP.

XRP bulls fight to keep prices above $2

XRP 1-day ChartXRP 1-day Chart

Source: XRP/USDT on TradingView

On the XRP 1-day chart, the $2.7 area had been highlighted as a key supply zone. It emerged when the 10/10 crash left behind a sizeable imbalance, and has served as resistance since then.

Despite repeated retests, it refused to budge.

The structure on the 1-day chart was bearish, with $2.06 being the key swing point. A 1-day trading session closing below this level would confirm the bearish trend’s continuation.

Until then, there is room for hope, though only slightly.

XRP 4-hour ChartXRP 4-hour Chart

Source: XRP/USDT on TradingView

The H4 chart reflected the importance of the $2.06-$2.15 zone as a bullish fortress. XRP has to bounce from this region to keep alive hopes of a recovery.

It also made a good buying opportunity with a clear invalidation. Given the liquidity clustered at $1.97-$2.01, traders looking to go long can set their stop-losses just below $1.97.

A daily session close below $2.06, or a 4-hour session close below $1.97, would confirm the downtrend’s continuation. Traders can then flip their bias bearishly and look to go short.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

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