Major Correction Ahead if Buyers Lose this Key Support

Major Correction Ahead if Buyers Lose this Key Support

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In the weekly time frame chart, the XRP price shows the formation of a cup and handle pattern. The chart setup often spotted at the bottom indicates a high probability of bullish reversal. As of now, the coin price trades at $0.59, and is forming the handle portion or pullback in the prevailing rally. Will this retracement lead to a fresh uptrend in the Fifth largest cryptocurrency?

Also Read: XRP Sideways Market Structure Extends – Can Shorts Turn Profitable?

XRP Price Analysis: Key Points

  • XRP correction backed by decreasing volume reflects the buyer exhaustion 
  • The Crypto buyers can witness suitable demand pressure from the $0.56 support
  • The intraday trading volume in the XRP is $1.6 Billion, indicating a 93% gain.

XRPSource: Tradingview

For over a month, the XRP price has been in a correction phase, where the prices plunged from the June 13th high of $0.938 to a $0.58 low. This correction registered a loss of 37.6% loss and plunged to the 50% Fibonacci retracement level.

A 50% retracement level is considered healthy to absorb the excess supply pressure and stabilize the asset for higher levels. By the press time, this altcoin trades at $0.592 and hovers above the $0.58-$0.56 support zone.

The buyers should manage to sustain this level to recuperate the exhausted bullish momentum. A potential bounce back from $0.58 will bolster bulls for a 58% rally and challenge the $0.935 neckline resistance.

A breakout above the $0.935 neckline will give a better confirmation of trend reversal.

Will XRP Extend Correction Trend?

Amid the increasing uncertainty in the crypto market, the XRP price could continue to consolidate above $0.58. However, considering a pessimistic approach, the sellers could give a breakdown below the mentioned support. With this breakdown, the coin price will also lose 61.8% FIB level, and bolster the price for a major correction to $0.426, or lower.

  • Exponential Moving Average: The weekly EMAs(20 and 50) gathering near $0.56 could offer additional support to buyers.
  • Directional Movement Index: A positive crossover state between the DI+(blue) and DI-(orange) slope reflects buyers hold enough momentum to trigger a bullish reversal.

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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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