XRP Price Prediction: How to avoid a smart money trap

XRP price shows a W pattern that could catalyze a massive bull run. Still, there is a chance for a smart money fake out. Key levels have been defined.

XRP price at a make or break point

XRP price currently auctions at $0.395 as the bulls have produced a steep incline rally during the third trading week of September. The volume profile indicator shows an uptick in transactions throughout the 20% rally, which is an optimistic gesture that more gains will occur.

A Fibonacci projection tool surrounding the July 13 swing low at $0.30 and July 30 peak at $0.41. Then projected into the most recent swing low on September 6 at $0.319, shows the current uptrend rally at the 100% Fib level. 

XRP USDT 8-Hour Chart

The bulls are struggling to close above the definitive $0.42 line in the sand. There also appears to be significant bearish divergence amidst the uptrend, which could be an early warning of a smart money fake-out.

The $0.42 level has been a level that rejected the XRP price on several occasions. On June 8, the XRP price tagged the level before falling 30% into the summertime low just hours later. On July 30, the XRP price tagged the same level, hinting at a breakout, but ultimately failed and fell 24% into the recent September swing low. 

Thus exercising caution near the current price labels is justified. A safer entry for XRP traders will be to miss the first rally past $0.42 and wait for a retest if it occurs. Thus, avoiding a failed breakout trap currently looks pretty plausible.

In the following video, our analysts deep dive into Ripple's price action, analysing key market interest levels. -FXStreet Team