Ripple prices fell further on Monday, despite an apparent recovery in bearish sentiment that accompanied a retest of the $0.85 support after a strong rally to $0.86. Since XRP/USD has been consolidating throughout the day, we predict bulls will become weary, causing another fall later today.
The recovery rally back to $0.86 appears to have run out of steam at the resistance marked by the 100-day EMA at $0.95 and has now fallen back down to support at $0.85, where it found to support this morning before continuing its downward trend throughout the day. The price is currently trading around $0.94 as bulls attempt another recovery rally—but we believe this may be short-lived as XRP/USD completes a retest of major support after days of moving lows and highs, which usually ends in a break below major support.
As things stand near term, though, we expect another sell-off in Ripple prices before markets stabilize once again within a long-term consolidation pattern between $0.85-$1.20 following a rally from troughs around $0.33-$0.50.
We predict that Ripple prices will break below $0.85 in the next day or two, as bulls lose steam and bears retake control of the market. Our target for this downward movement is $0.75, which is near the bottom of the long-term descending channel. A drop below this support could see prices fall to $0.50 or lower in the medium to long term.
However, should bulls manage to push prices above resistance at $0.95, we may see a return to the bullish trend that has been dominant throughout most of 2018. In such a scenario, our target would be a move up to $1.20-$1.25 and, if we see strong enough bullish momentum, even $2.
Even though the 100-day EMA at $0.95 is serving as major resistance to Ripple prices today, we believe that bulls will eventually retake control of the market and push XRP/USD back into a bullish channel or uptrend. However, such a move would take time to develop and should not be expected for several days or weeks—possibly after a retest of support at $0.75.
The hourly chart shows that the $0.85 mark has prevented further price rises in recent hours, likely leading to a return test of the downside later today.
Ripple has been on a downturn for several weeks. Ripple/USD has retraced over 55 percent from the previous major swing high of $1.35 to the $0.59 low, indicating that we may see a significant reversal soon.
The cryptocurrency market is still bearish, dropping significantly less on Friday. The overall market structure is still bearish, as we saw a strong downward move yesterday.
The price of Ripple hit resistance at $0.85 and bounced back more than 40 percent by the end of the day. Overnight, XRP/USD consolidated, suggesting that we will see a reversal to the downside later today.
Ripple price analysis is bearish today, with a strong possibility of XRP/USD dropping below $0.85 in the next day or two as bulls lose steam and bears retake control of the market. Our target for this move is $0.75, near the bottom of the long-term descending channel, after which we may see prices fall to $0.50 or lower in the medium to long term.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
This post was last modified on December 6, 2021 8:26 am
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