• XRP price traction continues to be absent as the stress of the looming $0.76 support builds with each day.
  • Ripple daily volume has not recorded one day above the 50-day average since May 23.
  • SEC case still overshadows the digital asset, particularly in periods of price stress.

XRP price remains locked in a range between the psychologically important $1.00 and the neckline of a multi-year inverse head-and-shoulders pattern at $0.76. However, a lack of technical clues leaves frothy forecasts on the sideline until directional confirmation can be gleaned from the charts.

XRP price may be waiting for a collective improvement in altcoins

XRP price has displayed similar passiveness and lack of direction as most altcoins. Ripple was not inspired by the 30% rally in Bitcoin price, instead favoring to be range-bound between two intimidating levels, the neckline of an inverse head-and-shoulders pattern at $0.76 and $1.00.

The range has not been accompanied by any signs of accumulation or distribution, raising the probability that XRP price may remain locked in the governing price range for the foreseeable future.

With XRP price at an inflection point, it is imperative to consider both sides of the trade. On the long side, Ripple is clear of any obstacles until $1.00, creating a 20% gain for investors from the current price. In addition, a daily close above $1.00 would introduce new bullish opportunities and targets, including a rally to the confluence of the 38.2% Fibonacci retracement of the May correction at $1.14 with the declining 50-day simple moving average (SMA) at $1.16, yielding a gain of 37% from price at the time of writing. 

Ripple investors should use pullbacks to the $0.76 support level to increase position sizes with an eye on maximizing portfolio gains. It provides a clear risk level if the trade goes against them.

XRP/USD daily chart

XRP/USD daily chart

A bearish view of XRP price is complemented by a minor head-and-shoulders pattern with the neckline close to $0.76, bolstering the inflection point’s importance.

If the neckline and $0.76 break on a daily closing basis, Ripple investors can then consider bearish outcomes for XRP price. However, it is critical to note that standing in front of a test of the May 23 low at $0.65 is the union of the anchored volume-weighted average price (anchored VWAP) at $0.74 and the 200-day SMA at $0.72.

Nevertheless, the downside risk for XRP price appears limited to 20% from the current price. Not a highly persuasive argument for loading the portfolio with short positions.

Advocating for a neutral view for XRP price and for investors to refrain from building sizeable short positions is the whale transaction count, which tracks transfers of $100,000 or more. In the past, jumps in the Ripple on-chain metric have matched important tops as large investors were liquidating their positions.

On a 30-day smoothed basis, the Santiment whale transaction count just tested the early March lows, suggesting that whale-driven selling pressure has been exhausted. If that is the case, XRP price downside should be limited to $0.76, or at most $0.72.

XRP Whale Transaction Count - Santiment

XRP Whale Transaction Count - Santiment

Ripple, unlike other altcoins, shows selling is exhausted within the whale investor category. Moreover, it is furnished with a stubborn range of support that should prove instrumental in sustaining XRP price if the cryptocurrency complex devolves into another collective sell-off. Hence, making headline-grabbing bearish predictions is unwarranted at this point.

Lastly, the importance of the SEC case against Ripple should not be dismissed in consideration of XRP price projections. Until there is a settlement, as most spectators anticipate, the digital asset will not go public and will not be available for trading on many major cryptocurrency exchanges. Both things are price negative while the case remains live. 

In the following video, FXStreet’s analysts highlight two key price points for investors to consider. 

 

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

SafeMoon price approaches critical support area, 37% gains await

SafeMoon price is experiencing a premature shift in trend after an attempt to move higher. The rejection on June 29 has led to an extended pullback which could be finding a foothold to kick-start an uptrend. A breakdown of the range low at $0.00000257 will invalidate the bullish thesis.

More SafeMoon news

Cardano founder faces backlash for his prediction as ADA price eyes 22% advance

Cardano price has been on a pullback that has led to a retest of a crucial demand barrier. If the buyers come to the rescue here, ADA will likely prop.  A successful bounce around the support area could propel ADA through immediate resistance levels to tag $1.61.

More Cardano news

EU to set up new agency to crack down on crypto transactions and money laundering

The European Union looks to set up a new agency for coordinating national supervisory authorities on money laundering. The bloc is planning to increase the transparency of cryptocurrency transfers.

More Cryptocurrencies news

Stablecoin firm Circle plans to go public through SPAC merger at $4.5 billion valuation

Cryptocurrency firm Circle announced that it will merge with a blank cheque company Concord Acquisition Group to be listed on the New York Stock Exchange.

More Cryptocurrencies news

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP