After trending briefly bearish for three months, XRP looks ready for a major sell following a recent breakdown from a critical support level. It currently trades at support after slightly rejecting a five-month low.
Closing last month’s trading with a complete head-and-shoulder pattern on the daily chart, XRP bounced off the neckline for three days and released pressure yesterday. This led to a key breakdown from a critical $2 level, which has been a serving as support for four months.
The price dipped to $1.61 for the first time in five months, although it has recovered briefly to where is testing resistance at $1.79 at the time of writing. A recovery above it could bring a retest at the recently broken critical support as resistance before resuming selling pressure.
Advancing bearishness could cause a massive loss in the future. The key price level to watch for a mid-term drop is $0.55 after scaling through a lot support levels. Such a setup should replicate other major altcoins dip as seen in the past few weeks. This pattern will likely play out soon.
Currently, the bulls are nowhere to be found. If they find their way back in the market, they must retake the yearly high before we can consider a shift. For now, the bears are much more likely to have the upper hands.
Source: Tradingview
Anticipating the next leg down, XRP must reclaim the current daily low before tapping the $1.53 and $1.28 support levels. Right below it lies $1.
A quick retest at $2 should bring us back on a sell mode. The resistance levels marked above it are $2.24 and $2.64, along with the $2.99 level – where it initiated the second selling phase in March.
Key Resistance Levels: $2, $2.24, $2.64
Key Support Levels: $1.53, $1.28, $1
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
The World Foundation has revealed that it recently completed a series of over-the-counter (OTC) sales…
The Government of Bhutan has been steadily reducing its Bitcoin holdings this year, and it’s…
Intercontinental Exchange is making another big move into the prediction market space, this time adding…
Virtuals has just introduced a new product called “Virtuals Console,” and it’s already getting attention…
Felix Protocol is making a clear move toward bridging crypto and traditional markets. The platform…
The TON Blockchain has taken another step toward making its ecosystem easier to use, this…