- Ripple price action popped higher but failed to break $1.10.
- With price action fading, the downtrend is still respected, making bulls trapped in their longs.
- A retest of $0.84 looks inevitable, with bears defending the downtrend.
Ripple (XRP) price action got some support from bulls who attempted to break the downtrend going on since September. With a false breakout above the blue descending trend line, bulls got caught in a bull trap. Bears will seek to drive price action lower toward $0.84, the low from August.
XRP price action keeps the downtrend intact, with bears still in control toward $0.84
Ripple (XRP) bulls attempted to break out of the downtrend from September but failed with a false breakout on Sunday above the blue descending trendline, the northern start for bears in XRP price action. With that false break, bulls have not been able to push price action above $1.10, and the price has started to fade to the downside. Bears will try to push price action further down with their entries on that descending blue trend line.
XRP bulls will want to try a second time, with the 55-day Simple Moving Average (SMA) coming in at $1. Looking at its past importance, that 55-day SMA does not hold very much credibility in XRP with price action not respecting it, whether to the upside or the downside. Bulls will get stopped out of their entries at $1.10, and new entries at $1 will be short-lived.
XRP/USD daily chart
Bulls in XRP price action will start to back off, and bears will have a smooth ride toward $0.84 by the end of next week. That level was low from September and will act as support for a second time, after it acted as a launching path for the rally on September 9 and 10.
With market sentiment ready to shift anytime back to risk-on, expect bulls to pick up quicker than foreseen, which might weaken bears and make $1.10 vulnerable again.
Like this article? Help us with some feedback by answering this survey:
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: Holds $105K mark as MicroStrategy adds 11,000 BTC, Trump pardons Silk Road creator Ulbricht
Bitcoin price trades around $105,000 on Wednesday after rebounding from the $100K support level the previous day. Michael Salyor’s MicroStrategy announced on Tuesday that it has acquired 11,000 BTC worth $1.1 billion, and President Donald Trump pardoned Silk Road creator Ross Ulbricht.
World Liberty Financial adds $47 million of ETH and wBTC each to celebrate Trump’s inauguration
Donald Trump-backed DeFi platform World Liberty Financial (WLFI) added $47 million of wrapped Bitcoin (wBTC) and Ethereum (ETH) each to celebrate Trump’s inauguration as the 47th President of the United States on Monday.
Top 5 made in USA altcoins tackle uncertainty on Trump’s return: XRP, Solana, Cardano, Chainlink, Avalanche
Crypto market capitalization of altcoins developed in the U.S. crossed $544.15 billion on Wednesday, January 22. Among cryptocurrencies trending in the U.S., XRP, Solana, Cardano, Chainlink, and Avalanche have gained in the past 24 hours, per CoinGecko data.
President Donald Trump plans $500 billion in AI infrastructure with OpenAI, SoftBank and Oracle
President Donald Trump announced a “Stargate” project for $500 billion in investment to advance the US AI infrastructure. The project will deploy an initial investment of $100 billion, scaling up to $500 billion, to establish advanced data centers and infrastructure in Texas.
Bitcoin: BTC rallies above $102,000 ahead of Trump’s inauguration
BTC's price continues to trade in the green, trading above $102,000 at the time of writing on Friday after rallying more than 7% this week. Recent US macroeconomic data released this week supported the rise of risky assets like BTC.
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.