XRP Price Forecast: Ripple at risk of 12% correction as volume subsides


  • XRP price has been consolidating for the past few weeks, unable to offer indicative moves in either direction.
  • Ripple could be vulnerable to further losses as it continues to see obstacles ahead.
  • Further selling pressure could spell trouble for XRP bulls, as the asset could be awaiting a 12% drop.

XRP price action has been muted in the past few days, with minimal clues as to directional intentions. Ripple has formed a declining resistance trend line since mid-June and could be expecting higher volatility following the period of stagnation. 

XRP price weighed down by heavy resistances

XRP price has been forming lower highs, presenting a declining resistance trend line on the daily chart since June 21. Ripple has attempted to recoup losses from its monthly low on June 22 and has been trading sideways since. The squeezing of the Bollinger Bands suggests that a period of high volatility may be in store for the asset. 

Ripple was unable to break above the 200-day Simple Moving Average (SMA), which has sealed XRP price in consolidation, struggling to find bullish momentum as trading volume has also tapered off.

The lack of buying pressure and the heightened resistance is spelling trouble for the bulls. The Ichimoku Cloud indicator that shows collective support and resistance levels indicates that XRP price is in a downtrend for the foreseeable future. 

Further, the thickness of the cloud also represents the heavy resistance XRP price is facing, which may lock Ripple in a bearish trend. 

XRP daily chart

XRP/USDT daily chart

Additional selling pressure and market-wide weakness may cause XRP price to retest crucial support levels before falling further. The 38.2% Fibonacci extension level at $0.62 is acting as support for Ripple. 

However, it is likely that the token could drop to the 23.6% Fibonacci extension level at $0.58 as the recent rebound has channeled minimal interest. Speculators should also be aware of the impending death cross when the 50-day SMA intersects below the 200-day SMA.

Should further downward momentum emerge, XRP price is at risk of falling at least 12% into the demand zone, which ranges from $0.50 to $0.55.

On the flip side, to void the bearish outlook, XRP bulls would need to break above the aforementioned diagonal trend line to confirm accelerating interest. Ripple could aim to tag the 200-day SMA, which coincides with the 78.6% Fibonacci extension level at $0.74, if this bullish outlook transpires. 

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Cardano price positioned for bullish reversal, with 100% gains in sight

Cardano price action has been some of the most dismal and disappointing out of all the major cryptocurrencies. But Cardano’s fortunes are about to change.

More Cardano News

Binance Smart Chain implements ongoing burn like Ethereum’s EIP-1559

Binance successfully concluded the Bruno upgrade v1.1.5 earlier today. A burn mechanism is now implemented to reduce the circulating supply of Binance Coin. 

More Binance Coin News

XRP nodes run by Ripple fell out of sync for over 5 hours, disrupted wallet services

Public XRP ledger nodes “s1” and “s2” run by Ripple fell out of sync with the XRP ledger for over 5 hours yesterday. Non-custodial XRP wallet Xumm was not functioning well, disrupting usage and accessibility. 

More Ripple News

Chainlink price ready to reverse, 30% upswing likely for LINK

Chainlink price seems ready for a reversal of its two-week downswing as it attempts to create a higher high. This outlook is also supported by on-chain metrics, which suggest the possibility of accumulation at the current levels for LINK.

More Chainlink News

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

BTC

ETH

XRP