With a 10% drop below the 50-day EMA, the XRP currency price has shown a bearish fallout of the flag formation. Will the price continue to plummet till it reaches $0.58?
With a bearish engulfing candlestick of 10% drop, the XRP currency price breaks below the $0.78 support level. With the long-tail formations, the subsequent candles show lower price rejection. As a result, the likelihood of a reversal to retest the bearish crash is greatly growing.
Technical highlights:
- The price of the XRP coin has reversed from $0.70.
- A bearish crossover is indicated by the MACD and signal lines.
The Ripple token’s 24-hour trading volume is $2.92 billion, suggesting a 30% drop.
XRP’s Past Performance
After a 45 percent price spike from $0.58 to the 200-day EMA, XRP coin prices formed a pennant. For weeks, the bearishly aligned EMAs’ consolidation tendency kept the triangle intact. However, on the daily chart, the current uptick in selling pressure breaches below the 50-day EMA and the flag pattern.
Technical Analysis of XRP
After the fallout of the flag pattern, the cryptocurrency price action develops a hammer candle on the daily XRP/USD chart. The lack of bullish commitment, as evidenced by the drop in trade volume, suggests an impending reversal.
The 50, 100, and 200-day EMAs all show a declining trend in a bearish alignment, with prices trading below all of them. The current retracement, on the other hand, may soon test the 50-day EMA.
As the RSI slope shows a downward trend continuation from the overbought zone down below the halfway mark, it implies a rise in underlying bearishness. As a result, the signal represents the possibility of a post-retest reversal.
The MACD indicator shows a sharp decline in both the fast and slow lines, resulting in a bearish crossover above zero. The MACD histograms reveal the beginning of bearish candles, indicating that selling pressure is increasing.
In summary, the XRP technical analysis suggests that a reversal to $0.75 is possible before a 20% downturn.
Next Big Thing
The price behaviour of the XRP coin suggests a strong likelihood of a short-term uptrend extension to retest the 50-day EMA. The EMA’s dynamic barrier, on the other hand, has the potential to push the price lower to $0.58, a drop of more than 20%.
$2.45 and $2.85 are support levels, whereas $2.85 and $3 are resistance levels.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
