XRP price to revisit $0.67 as the risk of a sell-off continues to build-up

XRP price is consolidating above the $0.746 support level, suggesting a minor upswing is likely.
The inability to move higher combined with a breakdown of the $0.746 support level is likely to trigger a 17% sell-off to $0.670.
A four-hour candlestick close above $0.818 will create a higher high and invalidate the bearish thesis.

XRP price has been on a retracement since setting up a local top on February 8. The recent downswing seems to be a response to Bitcoin’s recent correction. Going forward, the upside for Ripple appears to be capped, indicating that the altcoin could move lower.

XRP price to re-establish directional bias

XRP price is currently hovering above the $0.746 support level, eyeing a retest of the $0.818 resistance barrier. A rejection at this level is the key to a steep downtrend. Assuming this occurs, Ripple will retest the $0.746 foothold.

A breakdown of this barrier is likely considering the recent outlook surrounding Bitcoin. Therefore, investors can expect the remittance token to slide lower, especially due to the presence of the Fair Value Gap (FVG).

This inefficiency of the XRP price during its initial move higher adds credence to the bearish thesis. In total, a 17% drop seems likely for Ripple.

XRP/USDT 4-hour chart

Regardless of the FVG, if the XRP price pushes forward to produce a four-hour candlestick close above $0.818, it will create a higher and invalidate the bearish thesis. In this case, the bulls are likely to push XRP price higher to tackle the $0.866 hurdle.

If Ripple manages to clear this ceiling, market makers are likely to push the token to retest the $0.917 resistance barrier and collect the buy-stop liquidity resting above it.

Share: Cryptos feed

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.