- Ripple price analysis turns bearish as XRP breaks critical support levels
- XRP is stuck in a tight Bollinger Bands range between $1.4774 to $1.9636
- The bearish overtone is not affecting the daily charts, which remain bullish
- Consolidation is the theme currently in the entire crypto market.
Range-bound price movement in Ripple is confusing both traders and investors. The downward bias is cementing the sentiment that the current price downfall is more than just consolidation. The squeeze in Bollinger Bands won’t likely happen in a breakout but can take the price further downwards.
As reflected in Ripple price analysis studies, the downfall is more prominent on the hourly charts. The consolidation pattern is visible on the daily timeframe where the XRP is still on the positive side. Yesterday, Ripple rose by 5.8 percent, and the pair was struggling to reverse the downfall. As per Ripple price analysis, the bounce-back was met by a bearish start today as the price moves in a tight range between $1.4770 to $1.9636.
Monday’s 7 percent slide has been reversed partially, but the outlook looks bleak as the day moves ahead. At the time of writing, the XRP/USD pair is trading at $1.3212 after touching a low of $1.1730. The bounce-back has been gradual as the pair struggles to move upwards, and the ascending price channel is now in jeopardy.
Ripple price movement in the last 24 hours: Downfall risk remains high amid falling volumes
The current selloff in the XRP is courtesy of broader market weakness. Most altcoins are in a consolidation phase. The $1.287 is the essential support, representing the 38.2 percent Fibonacci retracement of the March uptrend. The next vital support level comes around $1.1982, where the selling pressure can subside, and buying can emerge again.
The intraday high for today remains at $1.4478. It would be difficult for the bulls to muster enough volumes to regain the intraday high since the downward bias is getting stronger. As the price approaches $1.2023 support, the pair is witnessing increased selling due to more profit booking.
The technical indicators are fast turning from neutral to bearish according to Ripple price analysis. The $1.2807 support remains a critical pivot point. The longer Ripple stays behind the $1.40 price level, the stronger will be the selling wave.
XRP/USD 4-hour chart: Another round of selling awaits XRP
The March uptrend was swift, and many support and resistance levels remain untested. XRP is bound to revisit these levels in due course of time. As per Ripple price analysis, some of the pivot points have already been approached in the current downfall.
The first significant resistance for XRP/USD pair remains at the $1.4900 level, which must be quickly demolished. However, the price is bound by the contracting Bollinger Bands, which are limiting any sharp uprise. The ascending price channel on the hourly charts is all but gone. The 55-day simple moving average is now sloping downwards.
The RSI remains at 44 level and has a downward bias. Other signals such as MACD and Stochastic RSI are also negatively biased. The pair is unable to break out of the downward trend due to falling volumes. As per Ripple price analysis, the pair would require massive support from the broader market to reverse the downturn and break beyond a $1.4478 high.
Ripple price analysis conclusion: Traders should brace for extended selling
Barring an extended crypto rally, traders should look out for key support levels on the hourly charts. The pair will likely remain under the $1.5430 level, the 23.6 percent Fibonacci retracement level of the March uptrend. According to Ripple price analysis, new long positions must be initiated only when the pair establishes itself above the $1.60 resistance.
The current pullback will retest lower levels before reversing the price action. Failure to protect the $1.2800 level will open up further downside towards the $1.2235 level. In the worst-case scenario of Ripple price analysis, the Ripple price can move towards $1.00 levels, too, as bulls cannot stop the extended selloff.
The current crypto market scenario involving extended correction can last for the next few days. Most altcoins retraced some of the recent March gains. However, the broader crypto outlook is improving, and the latest US Federal Reserve policy is further strengthening the positive sentiment.
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