XRP price is setting up for a sharp decline toward $0.40, here's why
- XRP price is facing significant resistance near $0.50.
- Ripple shows a tapered volume look, suggesting the uptrend is losing strength.
- Invalidation of the bearish thesis is a breach above $0.51.
XRP price could witness a sell-off into the mid $0.40 levels if the bulls hurdle through the $0.50 barrier.
XRP price may be losing steam
XRP's failure to maintain momentum over the $0.50 threshold may result in Ripples' demise.
In contrast to the last bull run that propelled XRP into the current price levels, the volume pattern throughout the last three attempts to overcome the $0.50 has been dropping. This is a subtle indicator that the upward trend is waning.
XRP is currently trading at $0.499 as another attempt is being made to hurdle the barrier. Still, the volume pattern maintains a relatively sparse look, suggesting retail traders alone may be pushing the price. If this is the case, a liquidation towards $0.47 and potentially $0.40 (if $0.47 does not hold) could occur in the coming days. The Relative Strength Index confounds this idea as a clear bearish divergence is shown as the XRP price ascends and attempts to rally through $0.50
XRP/USDT 2-Hour Chart
Invalidation of the bearish thesis can occur if the bulls breach the $0.51 level. In doing so, a buyers' frenzy targeting $0.56 could occur, resulting in an 11% increase from the current XRP price.
In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market. -FXStreet Team
Author
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.
