Can Ripple bulls still make a comeback to save XRP price from a steep correction?
- XRP price shows a decline in buying interest after a sweep of the $0.387 equal highs.
- If the selling pressure continues, investors can expect the remittance token to revisit $0.340.
- A daily candlestick close above $0.381 that flips the level into a support floor will invalidate the bullish thesis.
XRP price performs a U-turn after sweeping crucial levels and collecting liquidity. This retracement seems apparent, especially considering the bearish outlook for Bitcoin price from a lower time frame perspective and altcoins’ high correlation with it.
Ripple price lacks momentum
Ripple price appears to be forming a topping pattern. Initially, it broke above a two-month declining resistance level on July 18, but failed to sustain the rally. As a result, the XRP price sank lower and swept the July 15 swing low at $0.326, the original level responsible for the breakout.
After this move, XRP price once again rallied, this time by a total of 25%, to set a swing high at $0.41. This move collected the liquidity resting above the equal highs at $0.387, signaling a top formation. As seen in the chart, the Reversal Finder indicator signaled a top formation with a red dot and down candlestick, adding credence to the upcoming downswing.
As a result, XRP price has dropped 10% and is currently trading below the $0.381 support level. A minor throwback might arise after the recent sell-off, but rejection at the immediate resistance barrier will confirm the continuation of a downtrend.
In such a case, investors can expect Ripple price to revisit the $0.340 support level.
XRP/USD 4-hour chart
While things are looking overall bearish for Ripple price, a move above the $0.381 barrier will confirm a resurgence of buying pressure. A flip of this level into a support floor will invalidate the bearish outlook and trigger a potential move up to $0.439.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
