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XRP price faces multiple headwinds cutting Ripple uptrend short to 10%

  • XRP price recently bounced off the daily demand zone, extending from $0.694 to $0.753.
  • The resulting uptrend failed to continue, returning to the immediate support level to restart another uptrend.
  • A breakdown of the $0.694 support level will invalidate the bullish thesis for Ripple.

XRP price has hovered around a crucial high time frame support level for months. The recent retest of this barrier should have restarted an impressive run-up but Ripple faces multiple hurdles, resulting in a truncated uptrend.

XRP price dreams of a swift move

XRP price bounced off the $0.694 to $0.753 daily demand zone, leading to a 15% upswing. However, this rally reversed even before it retested the resistance barrier at $0.817. The downswing took the remittance token back to the pavilion, retesting the aforementioned demand zone.

If XRP price manages to kick-start another uptrend, there is a high chance it will be capped at 10% due to the 50-day Simple Moving Average (SMA) at $0.851. Cleaning this hurdle will open the path for a 12% upswing, bringing Ripple to revisit the 200-day SMA at $0.953.

This run-up will constitute a 22% climb and has a less probability of occurring as compared to the 10% rally to the 50-day SMA.

Any move beyond the 200-day SMA seems unlikely due to the presence of the 100-day SMA at $0.984.

XRP/USDT 4-hour chart

XRP/USDT 1-day chart

On the other hand, the daily demand zone, extending from $0.698 to $0.753 has been tested multiple times over the past five months. Hence, the chances of a breakdown of this barrier are more.

If XRP price produces a daily candlestick close below $0.698, it will create a lower low, invalidating the bullish thesis. This development could open the path for Ripple bears to knock the altcoin down to $0.604 after a 13% crash.

Author

Akash Girimath

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.

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