XRP price undergoes significant fade with too greedy bulls
- XRP price almost rallied towards the monthly pivot around $1.08 yesterday.
- With that rally, bulls started to take too much profit, and price action collapsed.
- Expect a further fade with XRP price possibly falling back to $0.88.
Ripple (XRP) price had a perfect trading day yesterday with a 13% uptick in value. But bulls cut the party short with too much profit-taking once XRP broke above $1.05. XRP price then collapsed back and almost pared back the day’s gains in full The risk today is that more downwards pressure will lead to a break back below $1.0.
XRP looks heavy going into Christmas eve
XRP price saw bulls entering with much joy at the 200-day Simple Moving Average (SMA) near $0.95, yesterday. The price launched like a rocket until bulls took profit above $1.05, killing hopes of another leg higher to $1.25. During the bout of profit-taking XRP price action collapsed, which further increased profit-taking until XRP price pared back almost in full Thursday’s gains.
XRP, for now, is caught between the 55-day SMA at $1.00 and the 200-day SMA supporting at $0.95. For the moment, a break below the 200-day looks the most plausible outcome as liquidity is thin, and more and more investors will not want to engage in the markets during the holiday season. Expect a further correction to the downside during the day as several trading sessions are or will be closing sooner than expected.
XRP/USD daily chart
Once XRP breaks below the 200-day SMA, an accelerated correction will probably follow towards $0.89, which should hold, given the low volume and lack of liquidity. Otherwise, just below there, two more support levels kick in at $0.84 and $0.78.
Should the mood music change some bulls may become interested in buying again leading to a return to $1.05.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
