XRP Faces Bearish Pressure as Bulls Lose Ground
Despite a recent bullish recovery of 7%, the XRP price is now experiencing a 5% intraday fall, following the overall market trend. As altcoins struggle to maintain their uptrend, it raises the question of whether Ripple coin will drop to $0.55.
XRP Price Encounters Bearish Engulfing Candlestick
The XRP price has been on an ascending trend in the daily timeframe, indicating a bull run. However, there have been visible peaks and retracements, highlighting the increased volatility in the market.
The altcoin formed a support trendline, leading to multiple higher-high formations. However, it recently reversed from the support trendline and failed to sustain its uptrend as it encountered supply at $0.64, resulting in a quick drop.
The XRP price has now fallen by 5.72% in an intraday trading session and is currently trading at $0.6031. This decline has led to the formation of a new bearish engulfing candlestick, indicating a potential reversal in momentum. The altcoin is reverting back to the support trendline as a result of this downfall.
Will the XRP Price Rebound?
With the overall market struggling to sustain its bullish momentum, the XRP price has quickly succumbed to increased supply pressure. The ongoing correction can be attributed to the high supply pressure at the 38.20% Fibonacci retracement level.
If there is a breakout above this level, it could signal a possibility of an extended bull run for Ripple coin. In an optimistic scenario, the uptrend may reach the $0.75 level as part of a breakout rally.
However, if the bearish trend continues, the XRP price may retest the support trendline and potentially fall by 12% in the coming days, reaching the $0.54 level.
Technical Indicator
- BB Indicator: The lower boundary of the Bollinger Band indicator has shown a downtick, indicating that sellers are driving a high-momentum downfall.
- Moving Average Convergence Divergence: A bearish crossover between the MACD (blue) and signal (orange) lines suggests an active correction trend is currently in motion.
Summary: XRP Price Faces Bearish Pressure Amidst Market Volatility
The XRP price has failed to sustain its bullish recovery and is now facing a 5% intraday fall. The altcoin’s reversal from the support trendline indicates increased market volatility. As altcoins struggle to maintain their uptrend, it remains uncertain whether Ripple coin will drop to $0.55.
Hot Take: XRP Price Vulnerable to Further Decline
The XRP price’s failure to sustain its bullish recovery raises concerns about its future performance. With the overall market struggling and increased supply pressure, there is a possibility of further decline for Ripple coin. Traders should closely monitor key levels of support and resistance to gauge potential price movements.
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