- XRP price prints a sneaky bearish divergence pattern on the daily chart.
- Ripple price retraces the historical trend with an uptick in transactions on the Volume Profile Indicator.
- Invalidation of the macro bearish outlook remains a breach above $0.48.
Ripple price prints a sneaky bearish divergence pattern that should not be taken lightly.
The ripple price looks dicey
Ripple price shows reasons to remain concerned. On July 26, 2022, a warning was issued as the Ripple price was rejected from a historical trend line dating back to April 2021. The classical price action signature resembles textbook catalyst makers. Based on Elliot Wave and Fibonacci projections, a $0.24 target has been forecasted.
On July 27, the Ripple price retraced the historical barrier with an uptick in volume and a huge bullish engulfing candle. Additionally, a 3-day morning star pattern is displayed on the daily chart, which will entice traders to look for bullish targets above.
XRP price currently auctions at $0.34. The main concern surrounding the digital remittance token is where it lies in terms of a macro count. Ripple price is still in a steep downtrend since April of 2021 and has not retraced 38-50% of the decline.
XRP/USDT 1-Day Chart
Everyone wants to catch the bottom in hopes of maximizing profits on the ride back up. There is no doubt that Ripple’s XRP token will be a $2.00, $5.00 and even $10.00 token someday. But right now, the move is still quite dangerous and can severely damage one’s opportunity cost.
On June 26, the Relative Strength Index confounds this idea very subtly. The bearish divergence spotted between June 24, and June 27 should not be taken lightly. If the technicals are correct, a steep decline will be the only way to resolve the divergence unless the Ripple price can rally through the macro invalidation point at $0.48. This scenario may be too risky for long-term investors. Staying sidelined and missing out on the initial 30% rally towards $0.48 is justifiable.
XRP/USDT 1-Day Chart
Subtle bearish divergences on the daily chart are usually the last chance before sharp liquidations occur. $0.24 is the first target, but the XRP price could continue in an extended decline targeting $0.17 for up to a 50% decline in price.
Bullish targets based on the morning star pattern should be considered short-term plays as the risk of a sharp decline will remain in the cards until $0.48 is breached.
In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market. -FXStreet Team
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.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?