- Ripple price action saw a bullish breakout after the consolidation on October 9.
- XRP price formed a bull trap with a false break above the green ascending trend line, trapping bulls.
- Bulls stepped in eagerly in XRP price action at $1.05 again, only to get trapped once more.
Ripple (XRP) price action is on net displaying a nice picture for the bulls at the moment. Bulls in XRP price got trapped twice in a bullish outbreak that started at the $1.05 entry point and twice saw rejection around the green ascending trend line. With a second failed breakout, bulls are not interested at $1.05 anymore and are giving bears some leeway to drop toward $1.
XRP price action offers room for bears, but bulls will make it in the end
XRP price action saw bulls licking their wounds after being hit twice by the same bull trap that got laid out by bears. Bulls entered at $1.05, which holds some historical importance and could ramp up price action in XRP quite quickly toward the longer-term green ascending trend line. Bulls saw a break above each time, however, get rejected and reversed by shorters who pushed them out of their positions.
XRP price now has more room to go to the downside as bulls will not start another attempt at $1.05. This gives the bears in Ripple price action some room, but not that much . Price action in XRP looks limited to the downside with a blue descending trend line that already gave some support on October 9, and around $1 bulls can count on not only the significant psychological figure but also the 200-day Simple Moving Average (SMA) that has proven to be a supporting floor throughout October.
XRP/USD daily chart
Expect XRP price action to fall in favor of the bulls once Ripple price reaches $1. Bulls have three easy reasons to pick up some XRP coins, and the price will pop back up towards $1.05 and $1.09. If XRP could enjoy some additional tailwinds, expect another leg higher with a retest and possibly break higher above the green ascending trend line.
Should global markets stay heavy and on the back foot, expect bears to break $1 and look to test $0.84 to the downside, which was the low of September. Bears could try and test $0.78, but at that level, bulls will want to defend their entry points from August and XRP price action looks interesting at those discounts.
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?