Jonathan Morgan
Independent Analyst
- XRP price drops below the lower support line of a bear flag.
- Daily candlestick closed below the Cloud.
- Final support is near, and failure to hold could be fatal for XRP.
XRP price, like the rest of the cryptocurrency market, has experienced significant bearish activity with persistent selling pressure throughout the trading day. Bears have been successful at testing and breaching critical support levels.
XRP shows signs of extreme weakness – oscillators warn of an impending bear market unless buyers step in
XRP price action is undeniably bearish. From the most recent swing high of $1.35 on November 10th to today’s swing low of $1.02, XRP has lost nearly 25% of its value. That loss may continue if XRP bulls continue to fail.
The weekly chart for XRP shows the close is now below the Cloud. If the weekly candlestick has a sustained close below the Cloud, it will be the first time since July 31st 2020. In addition, the weekly Relative Strength Index is sloping south below the first overbought level at 55 and the Composite Index looks to cross below its final moving average from a neutral condition. Those two factors point to an extended bear market unless buyers flood into XRP.
Any daily or weekly close below $0.98 would likely trigger a torrent of short selling. The Volume Profile only gets smaller below $1.02. The $0.84 price level is the final upper support zone for XRP price. A flash-crash from $0.84 to $0.65 is very likely.
XRP/USDT Weekly Ichimoku Chart
However, bulls could very quickly take over. As bearish as the current conditions are, the threshold of returning XRP price to a bull market and positioning it for a renewed bullish expansion phase is not difficult to attain. A weekly close at or above $1.18 would initiate an Idea Bullish Ichimoku Breakout pattern for XRP, likely setting the stage for a run towards new all-time highs.
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