XRP price hangs by a thread, 25% breakout on the line
- XRP price bounces off the $0.382 support level with a make-or-break scenario.
- A bounce off this level could result in a 25% upswing to $0.471.
- However, a breakdown could lead to a selloff that pushes Ripple to retest the $0.288.
XRP price shows a decline in momentum that could result in a steep correction. The directional bias will depend on how the remittance token will react to the immediate support level.
XRP price at inflection point
XRP price has been grappling with the $0.382 support level. Investors should note that this level was a major hurdle in June and continues to be extremely significant. Depending on how the remittance token reacts to this level, it could take off or result in a steep correction.
The Relative Strength Index (RSI) has slipped below 50 or the midpoint after briefly hovering above it. This decline indicates that the momentum is waning and bears are winning. However, the ongoing slump in XRP price could be a ploy from market makers to collect the sell-stop liquidity resting below $0.316.
Therefore, investors should not jump the gun and stick to a directional bias. A quick recovery rally above $0.382 followed by a liquidity run will signal manipulation. In such a case, market participants can expect the remittance token to continue its ascent.
The $0.446 and $0.506 levels are significant barriers where holders can book profit. This move would constitute a 25% upswing for XRP price.
XRP/USDT 1-day chart
On the other hand, if XRP price produces a decisive daily candlestick close below $0.382 without any attempts at recovery, it will signal that a bearish thesis is in play. In such a case, Ripple could trigger a 25% crash to $0.288.
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.
