XRP price sees red alerts flashing for Ripple with a 35% drop forecast
|- Ripple price gets firm rejection this week against the technical indicator level.
- XRP price slips back below the red descending trend line.
- XRP sees bears mounting momentum to push the price back to $0.50.
Ripple (XRP) price is an outlier against most other major cryptocurrencies as the pair is not in the possibility to gain on dollar weakness and favorable tailwinds underpinning price action in cryptocurrencies overall. XRP price looks to be hanging by a thread and looks set to tank a massive 35% next week. With the Relative Strength Index (RSI) just below 50, bears have the RSI in their favor for more downside to come.
XRP price needs a cure to get its act back together
Ripple price is this week, thus not going along the bullish playbook that is applicable for most other cryptocurrencies. Although more tail risks are being defused or diminishing, and the created room gets filled with tailwinds, XRP can not bank on it. Instead, price action looks very heavy as bulls get rejected this week from breaking above the 55-day Simple Moving Average (SMA) at $0.7823.
XRP price gets plagued by the choppiness that goes along with earnings season, and the more growing hawkish comments from FED officials are scaring XRP price investors for more rate hikes to come, thus limiting any upside for now in the Ripple coins. Expect to see a further drop into next week with XRP price looking for support near $0.6232, the low of March. If that does not hold, expect to see a slide further towards $0.50, where bulls usually should be interested in picking up some price action for a fade-in trade, and by then, the RSI will have breached the oversold area.
XRP/USD weekly chart
Should bulls come storming out of the gates and hit every offer possible in risk assets on Monday, expect a 180 turnaround in XRP price with a quick retest against that 55-day SMA. Once above, the road is open for a quick jump of 12% to the 200-day SMA at 0.8743. If that breaks, expect the 55-day SMA to be dragged along, and XRP could finally get out of the death cross that keeps XRP price in bearish mode.
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