XRP price prepares for 12% decline as David Tice warns of market meltdown

  • XRP price failed to set up a higher high on July 18, indicating weak buying pressure.
  • Investor David Tice warns investors about a major meltdown in the stock and cryptocurrency markets.
  • A failure to consolidate or bounce off the demand zone ranging from $0.547 to $0.568 could lead to a steep decline.

XRP price is currently hovering above a crucial demand zone, a bounce from which failed to produce a higher high. Such a development indicates that the buying pressure is relatively weaker.

Market meltdown not too far

While the cryptocurrency market enjoyed a burgeoning bull run in 2021, things have gone awry over the past three months. Bitcoin price has been consolidating in a tight range, showing no apparent bias.

Former Prudent Bear Fund manager David Tice mentioned recently that the cryptocurrency and stock markets are in a dangerous phase. Two of his primary reasons include the rise in debt and the over-priced futures earnings.

While the markets have recovered swiftly after the COVID scare, Tice thinks that “we are not out of the woods yet.” The investor added that his fund was long Bitcoin since $10,000, but hitting $60,000 pushed the flagship cryptocurrency into the overpriced zone. Tice mentioned that around the same time as this rally, the uproar among central bankers has increased, further adding credence to his bearish thesis.

With the big crypto moving sideways, XRP and other altcoins are taking a hit. Most cryptocurrencies have all declined more than 50%, indicating that the investors are cashing out. 

XRP price in tough spot

XRP price has dipped into the demand zone ranging from $0.547 to $0.568 on July 17 and rallied only 7%. This weak upswing indicates inadequate buying pressure from the bulls.

So long as Ripple price fails to produce a higher high above $0.621, the chances of a downswing that pierces the said demand zone increases.

Therefore, going forward, investors can expect the remittance token to slice through $0.568 and produce a 4-hour candlestick close below $0.547. This move will confirm that sellers are in control, opening up a path to the range low at $0.509, a 12% downswing.

If the buyers fail to rescue XRP price here, the immediate support levels at $0.509 and $0.496 are likely to be tagged.

XRP/USDT 4-hour chart

XRP/USDT 4-hour chart

While this down move seems plausible, investors should note a bounce from $0.568 could revive the upswing if XRP price manages to produce a swing high above $0.611. Such a move would confirm the presence of buyers and invalidate the bearish outlook.

Moreover, if the bid orders continue to build up after this uptrend, the buyers could propel Ripple to the 50% Fibonacci retracement level at $0.647.


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

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC scales higher, taking altcoins with it

Bitcoin price exuded bullishness over the past week as it continued to rally without significant corrections. As a result, Ethereum, Ripple and other altcoins have followed suit. Although the entire market looks bullish at the time of writing, things could turn awry if BTC witnessed a September 7-style crash.

More Bitcoin News

Dogecoin killer Shiba Inu ready for new bull run

Shiba Inu gets listed on Binance.US, SHIB price recovers from the loss posted over the past week. The Shiba-Inu-themed token is one of the top 10 most mentioned cryptos on Twitter alongside BTC, ETH, DOGE, ADA. Shiba Inu CEO reveals that Shibarium, Shiba L2 using Bone as native token, is currently under development.

More Dogecoin News

AVAX price to hit new all-time high at $80 as Avalanche bulls take over

AVAX price rose exponentially after breaking out of a crucial resistance level on September 10. However, this uptrend was cut short as the markets collapsed on September 12, which led to a quick retracement. However, Avalanche seems to be back on track and ready to continue its rally.

More Cryptocurrencies News

XRP price awaits 26% upswing, but stiff hurdles may blindside Ripple bulls

XRP price appears to be headed for a 26% climb, but the hopes of a Ripple rally could be hampered by the multiple resistances that stand in the way of the bullish target. The cross-border remittance token could find substantial support, should the optimistic outlook be ruined. 

More Ripple news


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