In response to the increasing bearish momentum in the crypto market, the XRP price has witnessed aggressive correction for over a month. From the last swing top of $0.938, the coin price plummets 46.4% to reach the current trading price of the $0.504 mark. Amid this downfall, the coin price has recently breached the $0.563 support providing sellers an additional barrier to offset buyers’ attempt to recover lost ground. Should you short XRP?
XRP Daily Chart: Key Points
- A breakdown below the $0.56 support bolsters an 18% drop
- A seven-month-long support trendline could provide buyers XRP buyers an opportunity to counterattack
- The intraday trading volume in the XRP is $1.1 Billion, indicating a 64% gain.
Source: Tradingview`
On August 17th, the crypto market experienced a sharp sell-off leading to extended correction in the majority of major digital coins. As a result, the XRP coin slipped 14% and breached $0.563 and 61.8% Fibonacci retracement level.
A high momentum breakdown reflects the seller’s conviction to plunge this altcoin price to lower levels. Currently, the XRP price trades at $0.50 trying to stabilize from the recent drop.
This struggle for sustainability below the breached support could trigger a minor consolidation below $0.56. Therefore, the coin holders can expect a sideway action in the coming days below the continuation of the downward trend.
Continuing with the bearish outlook, this breakdown could lead this fifth-largest cryptocurrency to $0.4 psychological support accounting for an 18% drop.
Will XRP Buyers Make a Comeback?
A closer look at the daily time frame chart shows the August 17th fall in XRP price witnessed demand pressure at a long-coming support trendline near $0.5. The candle pattern shows a long-tail rejection indicating a counterattack from buyers. This surge in buying pressure could bolster the above-mentioned price consolidation and validate sustainability at a lower price. A breakdown below the trendline will signal a downtrend continuation.
- Fibonacci Retracement Level: A breakdown below 61.8% FIB level is a sign of weakness for the prevailing uptrend
- Directional Movement Index: A negative crossover state between the DI+(blue) and DI-(orange) slope reflects a sustained bear trend for XRP coins.