• XRP price will trigger a bullish hammer candlestick pattern with a daily close above yesterday’s high.
  • Ripple holds critical support during a new wave of cryptocurrency weakness.
  • MVRV on-chain metric may be forming a bear flag on the 12-hour chart, signaling more weakness.

XRP price built a bullish hammer candlestick pattern yesterday as the cryptocurrency complex experienced a new wave of selling pressure. Today, Ripple is endeavoring to continue the rebound, but it needs a daily close above the hammer high to trigger a unique trading opportunity for investors.

XRP price projects tactical opportunities

The once prevailing optimistic XRP price outlook failed to materialize when the digital asset declined below the lower trend line of a bear flag pattern. The Ripple pattern’s measured moved target is $0.432, offering stubborn market operators an opportunity to lose 53% from the June 5 breakdown. The measured move target is calculated using the length of the flagpole. A drop of that magnitude leaves XRP price entrenched in the legal uncertainty price range that followed the November 2020 high into the December 2020 low.

However, yesterday, XRP price successfully defended the critical November 24, 2020, high at $0.780, constructing a bullish hammer candlestick pattern that may trigger today with a close above the high at $0.887. It was the third successful test of the $0.780 level since May 29, underlining the importance of the level in the broader outlook for Ripple.

If the hammer pattern triggers today, it should motivate XRP price to revisit the psychologically important $1.00, a level that has been equally instructive for the price action since May 24. A defeat of $1.00 will stimulate Ripple to challenge the flag’s lower trend line at $1.058, representing a 20% gain from the current price. XRP price could potentially test the declining 50-day simple moving average (SMA) at $1.219 before introducing a pullback.

An ambitious target is the confluence of the flag’s upper trend line at $1.306 with the 50% retracement of the April-May decline at $1.307.

XRP/USD daily chart

XRP/USD daily chart

Downside risk begins with a daily close below $0.780. The next XRP price support is the 200-day SMA at $0.661 and the May 23 low of $0.652. Any weakness beyond there imposes a difficult challenge for recovery any time soon.

A negative sign for the originating bounce is the bear flag forming on the Santiment XRP 365- day Market Value To Realized Value (MVRV) metric. The MVRV metric measures the average profit/loss of all coins that moved within the last 365 days, with negative values highlighting undervalued conditions and positive values showing overvalued conditions.

In the case of the 365-day MVRV, the bear flag could be a warning that Ripple remains overvalued and could face renewed selling pressure below the critical $0.780 level.


XRP MVRV ratio (365) - Santiment

XRP price is a crossroads, boxed in by the $0.780 support level and the range around the psychologically important $1.00. Until there is a meaningful close below or above those levels, Ripple is only positioned for tactical opportunities. Investors need to be precise with their entries around support and resistance in this environment and use daily closes to dictate longer-term capital allocation.

 

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

Can Solana price enter a 50% relief rally?

Can Solana price enter a 50% relief rally?

Solana price is in the beginnings of a quick recovery rally that could propel it back to levels that were last seen nearly two weeks ago. Two technicals back the claim for why SOL could be ready for this ascent.

More Solana News

Ethereum Price Prediction: ETH will sweep the lows at $1,500

Ethereum Price Prediction: ETH will sweep the lows at $1,500

Ethereum price displays reasons to believe in a ‘sweep the lows’ event in the coming days. Traders should approach the smart contract blockchain with caution.

More Ethereum News

Assessing the possibility of a 40% upswing for Cardano

Assessing the possibility of a 40% upswing for Cardano

Cardano price is in a spot favorable for the bulls and short-term traders as a rally might be in the works. A minor retracement will allow interested buyers an opportunity to accumulate ADA at a discount before catalyzing an explosive uptrend.

More Cardano News

Bitcoin Weekly Forecast: The last rebound before capitulation

Bitcoin Weekly Forecast: The last rebound before capitulation

Bitcoin price is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the highier time frames suggests that the bottom is not in yet.

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP