- Bearish Ripple price prediction scenario unfolds as the pair slides to lower supports
- XRP/USD loses 30 percent in a broader crypto market correction
- No bottom in sight as the pair has broken below key support levels on the charts
Correction time – After a rapid rise, it is time for a healthy correction in XRP/USD
Most cryptocurrencies were trading near their annual highs for the past few weeks. After Bitcoin posted fresh new highs, it was time for the altcoins to join the bull run. However, analysts were worried about the near-vertical rise in prices and were predicting a correction. Now, it seems that they were right as the bearish Ripple price prediction has come true.
Ripple price has declined by approximately 30 percent in the past 24 hours. This is a substantial downward movement by any standards. It is currently stagnating near the $0.50 support that has helped the pair bounce back to higher levels many times in recent weeks. The near 10 percent crash in BTC/USD is affecting the altcoin market as well.
XRP/USD didn’t stop at any intermediate support levels. The XRP/USD 4-hour chart shows that the pair is hovering around primary support levels near $0.5 and $0.45. Analysts will see today’s correction as a healthy trend that will help tone down excessively bullish trends on the daily charts. Therefore, the pair is expected to bounce back from lower supports in the coming days.
Ripple price in the last 24 hours – A little step back is healthy
XRP touched fresh annual highs as the pair reached $0.75 resistance. However, mounting selling pressure and overbought technical indicators meant that a correction was overdue. The pair was struggling near the $0.75 level after repeated attempts to breakthrough higher levels.
Today’s sharp drop has been stopped at .5 Fib retracement, which stands at the $0.5 level. The bears have increased the selling pressure, but the hourly charts are oversold. The technical indicators on smaller-scale hourly charts are fast reaching oversold levels, and the bearish hold will start to weaken soon. Green candles have begun to emerge on the charts. The price has also recovered slightly from the bottom of the Bollinger Bands igniting hopes of a bullish Ripple price prediction.
XRP/USD 4-hour chart – Selling rally stalls near $0.5 support
Sellers will try to build the pressure to break below the $0.5 support level and push towards the next technical support at the $0.45 level. The price will likely find strong support underneath at that .618 Fibonacci retracement level at $0.435. The RSI and MACD indicator is showing oversold readings on the hourly charts. The bears will have to keep the momentum going if they want to break the $0.435 level and turn Ripple price prediction extremely bearish.
On the other side, bulls have begun to emerge on the hourly charts. The price has been unable to break below the lower Bollinger Band at $0.5. Now, the first resistance faced by a possible recovery rally stands at $0.556. Any bullish Ripple price prediction puts the next higher resistance at $0.6, where bears can resume their selling pressure.
Bulls have technical indicators to support their recovery rally. The XRP/BTC pair is also reaching oversold levels where the key support area of 2900 SAT is now under stress. The pair will have to cross 3200 SAT to mark a recovery trend on the hourly charts. The October 2019 high of 3785 SAT now looks like a far-fetched Ripple price prediction. Today, the pair must close above 3000 SAT to signal an end to the short-term bearish trend.
Ripple price prediction conclusion – XRP must resume uptrend after correction
The current decline was expected after the price spike towards the $0.92 level. The overbought levels were unsustainable and warranted a correction. If the recent correction was intentional and bulls have the buying power, the recovery will start in a day or two. The pair has found strong support near the $0.5 level and can bounce back.
The widespread sell-off is a result of a broader crypto market correction. Most altcoins have undergone correction in the past 48 hours. The 50-day SMA at $0.5 is the level to watch out for as bulls have built strong ‘buy walls’ near this area. Otherwise, the pair can slide towards the 100-day SMA at $0.35, and the decline can accelerate further. Today’s fall marks a significant correction on the daily charts as well. The larger timeframe weekly charts still support the bullish Ripple price prediction.
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