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 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
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.
