Ripple is done correcting, 30% gains on horizon

  • XRP price has dropped roughly 16% over the past four days, tagging a critical support barrier at $0.596.
  • Investors can expect a reversal in this downtrend, and a confirmation will arrive after a breach of $0.647.
  • A breakdown of the $0.568 demand level will invalidate the bullish thesis.

XRP price has tried multiple times to slice through the high probability reversal zone but failed. The most recent rejection occurred on July 4, and Ripple has been on a downtrend since then. This down move has led to a retest of the critical support barrier, which might trigger an upswing.

XRP price prepares for a massive leg up

XRP price has tried four times to breach the high probability reversal zone, ranging from $0.680 to $0.727 over the last two weeks. These attempts were unsuccessful, and the latest jab pierced the 70.5% Fibonacci retracement level at $0.704 but failed to sustain above it. 

This inability of the buyers led to a 16% retracement that tagged the $0.596 support level. In some cases, Ripple might dip a little deeper and retest $0.581. Both these levels will allow buyers to recuperate and accumulate XRP at a discount, triggering a massive upswing.

If this were to happen, the 50% Fibonacci retracement level at $0.647 would be the first barrier to be flipped into support. Following this, the remittance token needs to pierce through the high probability reversal zone and produce a decisive 4-hour candlestick close above $0.727, which denotes the intention of buyers.

If such an event were to occur, it would trigger FOMO and propel XRP price toward the range high at $0.78.

See also

XRP/USDT 4-hour chart

Regardless of the bullishness surrounding the remittance token, a breakdown of the $0.581 barrier would indicate weakness among bulls. However, if the sellers slice through $0.568, it will invalidate the bullish thesis and catalyze a potential 10% sell-off to $0.509.

View more information:

See more articles in category: Finance

Leave a Reply

Back to top button