- XRP price dumped 10% early Thursday morning before rising 10% shortly after.
- The Relative Strength Index breached historical oversold territory.
- Invalidation of the bearish thesis is a breach above $0.56.
XRP price witnessed an extremely volatile market behavior amidst the US Consumer Price Index release. Key levels have been defined to determine the next trending direction.
XRP price dumps and pumps
XRP price is rebounding rather impressively on Thursday, October 13. The digital remittance token, which plunged 10% in the wake of the US Consumer Price Index announcement, experienced the sharpest decline among the top 3 cryptocurrencies. On shorter time frames, the Relative Strength Index entered historically oversold territory, followed by the stunning countertrend surge.
After dropping to $0.44, the XRP price is currently trading at $0.48. The bears broke both the 21-day simple moving average (SMA) and the 8-day exponential moving average (EMA) during the downturn, and a retracement into the 21-day SMA occurred hours later.
XRP/USDT 3-Hour Chart
Still, the uptrend rally may be a short squeeze and entering the market post-rally could be very problematic. If the $0.56 level is left unchallenged, traders should expect a decline toward $0.40.
Thus, this thesis remains bearish until the $0.56 swing high is breached. If the bulls manage to hurdle the swing high, a rally toward the $0.61 liquidity levels will be back in the cards, representing a 32% rise from the current XRP price.
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
Bitcoin rebounds as South Korea martial law proves short-lived
Bitcoin recovers slightly, trading above $96,000 on Wednesday, after its recent dip on Tuesday due to the political strife in South Korea. With the crisis seeming to be mostly over, BTC recovered more as the reversal of the martial law restored confidence in crypto markets.
Curve DAO price surges above $1, highest level since April 2023
Curve DAO extends gains by more than 30% on Wednesday, rallying 70% so far this week and reaching levels not seen since April 2023. On Tuesday, the announcement of CRV’s scrvUSD stablecoin launch on the Spectra ecosystem fueled the ongoing rally.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptomarket stabilizes after South Korea reverses martial law
Bitcoin hovers near $95,700 on Wednesday, signaling potential weakness as technical indicators suggest a decline, while Ethereum and Ripple stabilize near key levels, hinting at a possible rally following South Korea's reversal of martial law.
Ripple's XRP sees over $4 billion in profit-taking following surge in whale activity
Ripple's XRP is down 5% on Tuesday after news of South Korea declaring martial law sparked a surge in selling activity and significant profit-taking among investors. However, whales have stepped up buying pressure as the remittance-based token looks to stage a recovery.
Bitcoin: A healthy correction
Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.