Ripple price looks heavy, but a retest of $0.70 could return $0.80 next week

Ripple (XRP) price gets dragged to the lower end of this week's range as equity futures are pointing to a red opening, and European futures are firmly sub -1%. Given the pervasive risk-off environment, investors are pulling orders in cryptocurrencies, opening the door for bears to lower price action. But the devil is in the detail as a $0.70 psychological level is nearby, and with the Relative Strength Index (RSI) nearing oversold, bulls will have their chance to pick up XRP price at lucrative discounts, rallying price action back up to $0.80,  just shy of 15% gains.

XRP price set to return 15% of value if bulls defend $0.70

Ripple price sees bulls rolling over as they fail to defend $0.73. With the favourable tailwinds from yesterday not filtering into the XRP price action, bears seized the opportunity to drive the price down and see hesitant investors pulling their funds. With some more dollar strength back in the driving seat, XRP price is undergoing a double whammy of bearishness. One could even argue that it is strange that the XRP price has not made a nosedive move yet. 

XRP price has quite a few elements in its favour, such as the RSI that is trading near oversold, and a considerable tail risk with the French elections set to be priced out, opening up some room for warm tailwinds to ramp price action higher. Expect to see the buy-side demand blowing up by bulls jumping in at the $0.70 area, and by the beginning of next week, XRP price will be near $0.79-$0.80. Reasons for this will be the dollar weakening, and risk-on will set the tone at the beginning of the week after Macron secures another term as French president.

XRP/USD  4H-chart

Risk to the downside could come with equity markets further deepening their losses and closing the trading week with a loss on the books. Together with possibly the dollar booking further gains and slipping below $10.773, making a new multi-year low. Those elements could further weigh and squeeze out bulls at $0.70, creating a sharp nosedive move towards the low of April at around $0.67.