Will this support confluence save XRP price from a 10% drop?
- XRP price has retraced its move over the past week, undoing the 12% gains.
- A support confluence at $0.340 stands between Ripple bulls and a 10% move.
- If buyers seize control, the altcoin could rally 10% and retest the $0.380 hurdle.
XRP price, like many altcoins, has undone its gains witnessed over the last week. This development comes as the Bitcoin price struggles to move above a historically significant barrier. If bears take control of BTC, things could reflect the same for Ripple and other altcoins as well.
XRP price needs to make a decision
XRP price broke free from a two-month declining resistance level on July 18 as it rallied 6.3% in a single daily candlestick. As a result, Ripple set a swing high at $0.380, which in hindsight, was a local top for this rally, which started on July 13.
Since the July 13 swing low at $0.301, XRP price has set up multiple swing points in the area, extending from $0.301 to $0.311. This zone can be termed a liquidity pool and is likely what is preventing Ripple from going lower.
A breakdown of the support confluence consisting of the declining trend line and the horizontal foothold at $0.340 will confirm the directional bias for XRP price. Assuming buyers fail to defend the aforementioned barrier, investors can expect a quick 10% drop to $0.301.
XRP/USDT 1-day chart
On the other hand, if XRP price manages to bounce off the $0.340 support confluence, there is a high chance of bulls taking back control. In such a case, investors can expect XRP price to rally 10% and retest the $0.380 hurdle.
In a highly bullish case, a flip of $0.380 could lead to a sweep of the double top at $0.387, bringing the total run-up to 14%.
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.
