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XRP price could fall again as the cryptocurrency market reacts to geopolitical shifts and gun control proposals

  • XRP price is witnessing a steep decline since this weekend's rally.
  • Ripple price is increasing shorts on the volume profile volume. 
  • Invalidation of the bearish thesis is still a close above 0.44.

XRP price is likely to fall into the mid $0.30s again. Traders should keep the digital remittance token on their watchlist in hopes of catching a profitable trade.

XRP price is on track for $0.30 lows

XRP price is still on pace for more decline. It was mentioned in last week's thesis that a countertrend rally could occur, but the overall downtrend would remain intact unless $0.44 were touched. The XRP price validated the bearish idea, producing a profit-taking rally while leaving the invalidation point unscathed. Traders looking for more upside potential should proceed with caution. 

XRP price is currently trading at $0.40 as the bulls are trying to regain strength following the steep bearish engulfing candle produced on June 1. The strong declining candle signals an end to the countertrend rally and will need to be fully retracted to consider any bullish idea. If market conditions persist, a 'sweep the lows' event is likely to occur as the crypto arena has been highly correlated to news events such as geopolitical shifts and gun control proposals. Several crypto enthusiasts and news sources attribute the turbulent market environment to the increasing number of mass shootings taking place within the United States. The volume indicator shows subtle signs to further confound the bearish thesis.

tm/xrp/6/2/22

XRP/USDT 1-Day Chart

Invalidation for the bearish thesis lies at $0.44. If the $0.44 is broken. The XRP price could rise towards $0.50, resulting in a 20% increase from the current Ripple price.

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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