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XRP price set to tank 17% next week as Ripple does not respect earlier support

  • Ripple price breaks for a second week in a row below the monthly S1 support at $0.60.
  • XRP price could fall further if XRP price closes the week below the monthly S1.
  • Going into next week, losses would mount another 17%.

Ripple price is testing investors’ nerves as the price is testing and breaking the monthly S1 for a second week in a row. As long as price action can make a weekly close above, recovery is possible, as a weekly close below would set the scene for a further downfall, holding initially 17% losses. Expect the current market volatility price to fall below and set the scene for $0.50 next week.

XRP price could have tested investors nerves once too many

Ripple price is set to close the week below the monthly S1 support level at $0.60. Last week bulls were able to uphold price action above there for the weekly close, but that looks to be falling apart for this week. With a close below, the start on Monday could see a further continuation of that slide and hit a 17% loss towards $0.50, going further into the trading week next week.

XRP bulls will want to engage at this level because of its historical importance in June and March. With several headwinds overpowering the current sentiment, the price could even continue to further correct towards $0.36, which was February’s low. In the process, bulls will not resist this discount and be able to pick up XRP at $0.40 or lower.

XRP/USD weekly chart

XRP/USD weekly chart

During the weekend, investors will have the chance to digest all the events from the past week and give the dust a chance to settle. This could translate to investors already getting involved in the price action before the new trading week starts and the process already creating a pop in price action to the upside. Although it might look quite far, a return to $0.80 around the 55-day Simple Moving Average would not be unthinkable if investors put large volumes into the rally.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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