Attention Traders: XRP Breaks Multi-Year Consolidation, May Drop Below $0.3 if This Trade Plays Out Well
The post Attention Traders: XRP Breaks Multi-Year Consolidation, May Drop Below $0.3 if This Trade Plays Out Well appeared first on Coinpedia Fintech News
Ever since the XRP price faced a massive rejection in March 2022, the rally continued heading towards the south, discovering the lows below $0.3. As it triggered a rebound, it maintained a healthy upswing along the trend line that acted as strong support throughout the journey. However, the market dynamics appeared to have changed to a large extent as the traders flipped from being optimistic to pessimistic.
The market conditions are always changing, due to which the XRP price has been impacted to a large extent. The chart in the long term displayed a notable dominance of the bulls but the bears jumped in, which changed the entire scenario. The token has formed constant higher highs and lows for over a year in the long term, but the recent bearish pressure has compelled the price to break down the crucial range.
Hence, the XRP price is now expected to reach its lows by plunging over 35% in the coming days.
As seen in the above chart, the XRP price has broken down from the key trend support and has failed to secure the levels back within the decisive symmetrical triangle. Besides, the selling volume has piled up to a large extent, due to which the bearish trajectory may prevail for some more time. After breaking down, the token hit the first bearish target at $0.42, which is part of the continuation and break of support, indicating this isn’t the end.
The weekly RSI dropped below average levels and appears to be heading towards lower support. Therefore, there are higher possibility of reaching the next target at $0.4, which is a very strong trend reversal zone. It has been a strong support as well as a strong resistance in previous times and hence a very strong volume is required to break the levels. Now that the bearish pressure has mounted, the next bearish spell could push the prices below $0.4.
Once, this trade is accomplished, bulls may not be able to prevent the selling pressure, which may eventually lead the levels towards the lower and crucial support zones at around $0.3. Therefore, the XRP price continues to remain under bearish pressure but a rebound and a re-entry within the pattern could invalidate the bearish theory.
Filed under: Bitcoin - @ April 14, 2024 6:51 am