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.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
