Bull Trap Sets XRP Price on 8% Downside Risk

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Published 5 hours ago

XRP Price Prediction: The ongoing recovery rally in XRP price has recently turned down from the $0.475 resistance level. However, the resulting pullback is a retest opportunity to breach resistance and check price sustainability above them. Can XRP price resume its bullish recovery from this level or will the correction phase continue longer?

key Points:

  1. The lower price rejection candles at the $0.45 level indicate buyers are actively defending this support.
  2. The flattish EMASs(20, 50, 100 and 200) reflect an overall sideways trade 
  3. The intraday trading volume in the XRP is $1.34 Billion, indicating a 47% loss.

XRP Price PredictionSource- Tradingview

On March 21st, the XRP coin price witnessed a massive inflow and surged its market value by 25%. The long-bullish candle breached two crucial resistance, i.e. resistance trendline of the falling channel pattern and the monthly resistance of $0.42.

This bullish breakout offered buyers a significant footing to bolster further price rallies. However, with rising FUD in the crypto market, the XRP price reverted from the $0.475 resistance and tumbled 12.15% to reach the current price of $0.417.

With today’s bearish candle, the XRP prices breached the $0.42 flipped support, questioning the credibility of the prior breakout. A daily candle closing below the aforementioned level will project the previous breakout as a bull trap or a failed breakout. 

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This breakdown will intensify the selling pressure and may tumble the XRP price by 8% to retest the breached trendline of $0.38.

Conversely,  if the XRP price sustains above the $0.42 mark by the day’s end, the buyers will get an additional confirmation for price sustainability at higher levels. With sustained buying, the XRP could rechallenge the $0.575

Technical Indicator

MACD: A significant gap between the MACD(blue) and signal(orange) line into bullish territory showed a sustained buying press in the XRP price.

Bollinger Band: the rising XRP price reached the upper band of the Bollinger band indicating the buying activity extended for a short period. Thus, the ongoing consolidation could assist buyers to recuperate the bullish momentum

XRP intraday price levels

  • Spot price: $0.42
  • Trend: Bearish
  • Volatility: High
  • Resistance level- $0.47 and $0.51
  • Support level- $0.43 and $0.

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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