• XRP price is displaying bullish fatigue on the Relative Strength Index.
  • Ripple price is coiling into a triangular pattern.
  • Invalidation of the bearish thesis is a breach at $0.465.

XRP price has investors questioning how low the digital remittance token can fall. As other cryptocurrencies are positioning for an anticipated countertrend spike, XRP price action diverges from the pact, hinting at another drop in the coming weeks.

XRP price is coiling for a breakout 

XRP price displays slightly bearish signals to start this week's trading session. The XRP price is printing lower highs and higher lows as the bulls and bears continue in the tug of war at $0.4250. The forming triangle pattern is undoubtedly set to send the XRP price into a strong rally. The directional breakout from the triangle could go either way. Still, this thesis will be written to justify a short-term bearish outlook while keeping an invalidation level tight to capture profits from the alternative bullish scenario safely.

XRP price most important cautious signal is the Relative Strength Index. The Ripple price continues to gain profitable grounds. At the same time, the RSI values the uptrend's power similar to the April 3 $0.80 when the XRP price also failed to produce a bullish breakout from a much larger triangle pattern. This subtle cue could be inducing XRP price into bullish fatigue as the bulls are not gaining much profit while competing with minimal support. If the technicals are correct, a fall into $0.31 could wipe out day traders' liquidity stops before a strong rally into $0.50 occurs.

TM/XRP/5/23/22

XRP/USDT 6-Hour Chart

Still, invalidation is necessary to make sure some profit can be captured to counterbalance the risk of being early on the wrong side of the trade. An invalidation for the bearish trend line lies at a break at $0.4650. If the bulls can breach this level, an immediate buy entry can be placed while keeping the safety stop at the swing low at $0.3869. The bulls should be able to reconquer $0.50 and possibly $0.54 resulting in a 27% increase from the current XRP price. 

 

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 Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ripple price sees investors bracing for Powell late Wednesday with $0.44 in the cards

Ripple price sees investors bracing for Powell late Wednesday with $0.44 in the cards

XRP price will see traders mainly focusing on the Powell speech later today at the Brookings Institution. With many questions being raised and Fed members contradicting one another, markets will be hanging on every word coming from Powell’s mouth to get a clearer view of what the path will be going forward.

More Ripple News

ECB director calls for Bitcoin ban, says BTC is not suitable for payments or investments

ECB director calls for Bitcoin ban, says BTC is not suitable for payments or investments

The European Central Bank (ECB) detailed its stance on Bitcoin (BTC) and the cryptocurrency ecosystem in a blog post on November 30. In this article, the financial institution outlined the stark differences between regulation of digital assets in Europe and the US and that they should not be legitimized. 

More Bitcoin News

Solana price in for a surprise as markets expect Powell to bring out the reindeers

Solana price in for a surprise as markets expect Powell to bring out the reindeers

Solana price is at the cusp of starting the long-awaited Christmas rally. SOL could be seen jumping 37%, making it its best performance for the year.

More Solana News

Three on-chain metrics suggest Bitcoin price has bottomed, here’s where BTC is going next

Three on-chain metrics suggest Bitcoin price has bottomed, here’s where BTC is going next

Bitcoin price has triggered a 5% upswing overnight, slicing through critical hurdles. Three on-chain metrics suggest that BTC might have bottomed and has kick-started another bear market rally.

More Cryptocurrencies News

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP