• Ripple price is on the cusp of dropping back below $0.40.
  • XRP price appears to be in a false break above the red trendline.
  • Expect to see another 20% drop for a test of the low at $0.3323.

Ripple (XRP) price saw bulls trying to get price action through the red descending trendline over the weekend, in an attempt to stop this downtrend that has been present since April. Although it looked like bulls were succeeding at first, a data dump out of China poured cold water on the plan. With lockdowns biting hard on economic data, investors did another round of reshuffling in their risk portfolio, and yet again, cryptocurrencies were amongst the casualties. Several opinion pieces over the weekend from central bankers made it clear that they will not step in to prop up the crypto sector to prevent a default, which further created uncertainty for market participants .

XRP price set to test and slide below $0.30

Ripple price is again bleeding, despite a recovery over the weekend, which looked to have done some patchwork, with XRP price trading up for three consecutive days and even breaking above the downtrend guideline (red descending trend line on the chart). The break above that trend line seemed to be too high an aspiration for bulls, given the weight of already very troubled geopolitical tail risks weighing. Additional geopolitical worries have since come from China reporting negative data on retail and industrial production, setting the tone in the early hours of trading this morning, and pushing investors a little more towards the exit from cryptocurrencies.

XRP price for now sees losses contained, with $0.4086 holding, but as the $0.4228 level breaks, expect to see more bearish flow as short-selling will happen around that red descending trend line. It will all boil down to the daily close and whether that close is either above or below the red descending trend line. Expect intraday price action to be a heavily fought affair with both bears and bulls engaging and seeing whipsawing moves across the trend line throughout the day. Seeing the broadness and weight of all the geopolitical uncertainties, without even mentioning the next round of supply chain issues that are on the horizon, from the delayed effect of Chinese lockdowns, more downturn for XRP price is expected, with a test towards $0.3323 and possibly a slip below $0.30.

XRP/USD daily chart

XRP/USD daily chart

As said above, the close this evening will be critical for the rest of the trading week. A close above the trend line would set the scene for Tuesday’s trading, with $0.4799 providing a confirmation level for a test and break above. In such a scenario, XRP price could rally back up towards $0.5852 and book over 40% gains in the process.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin active addresses hit lowest level in five years, BTC ranges below $67,000

Bitcoin active addresses hit lowest level in five years, BTC ranges below $67,000

Bitcoin (BTC), the largest asset by market capitalization, has noted a decline in its active address count per data from Glassnode. A decline in active addresses is typical at a time during a surge in Bitcoin transaction fees.

More Bitcoin News

SEC vs. Ripple lawsuit update: Regulator responds to letter regarding Terraform Labs judgment

SEC vs. Ripple lawsuit update: Regulator responds to letter regarding Terraform Labs judgment

Securities and Exchange Commission (SEC) responded to Ripple’s letter that quotes the reasons for the settlement amount being unreasonable. The payment firm had proposed a fine of $10 million, as opposed to the SEC’s $2 billion. 

More Ripple News

Gemini Earn creditors could recover their funds in coin as New York Attorney General recovers $50 million

Gemini Earn creditors could recover their funds in coin as New York Attorney General recovers $50 million

Gemini exchange had terminated its Earn program after Genesis Global Capital did not return over $900 million in assets that it owed to the platform. New York Attorney General Letitia James’ office has recovered a total of $2.05 billion from the platform.

More Cryptocurrencies News

Here’s what you need to know about LayerZero ZRO token airdrop

Here’s what you need to know about LayerZero ZRO token airdrop

LayerZero Labs CEO Bryan Pellegrino released details of the upcoming ZRO token airdrop in a recent tweet. ZRO total supply is 1 billion of which 23.8% will be directly allocated to the community and builders. LayerZero announced June 20 as a key date, it remains unclear whether this is the airdrop or entitlement date. 

More Zro News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Federal Reserve (Fed) keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP