After several crackdowns in the past two months, Ripple extended bearishness this week and traded back at the bottom. It bounced slightly in the mid-week but remained weak daily as it lost over 20% in two months.
XRP has finally rolled back to the bottom following a steady decrease for eight weeks. It pinned support at $0.489 this week and bounced back for three days. The bears appeared back with 3% drops over the past hours.
While looking poise for another drop, it may lose the current weekly low to establish a new one at around $0.40, which was marked as a year low. The current market structure indicates that the trend is still under the bears’ radar.
If the bleeding stops around this bottom area, it may enter a little consolidation phase for before initiating a buy. The two-month descending resistance line may continue to suppress buying pressure. A successful cross above it will validate a trend reversal on the daily chart.
Currently, there are no signs of buying as the bulls are off the market. we can expect more dips if the bears fail to show a strong reaction at this bottom area. XRP remained bearish on a weekly scale as it is yet to find a key level to bounce back.
XRP’s Key Level To Watch
For more breakdowns, the closest support to watch right now is $0.4, sitting right below the weekly low. If the market continues to bleed, the $0.425 level would be the next support to watch, followed by $0.41 – last year’s low.
In case of a rebound, there’s a close resistance at $0.55, which coincides with the descending resistance line. Above this line lies $0.578 and $0.624. The $0.75 resistance is the key break level to watch for a complete reversal.
Key Resistance Levels: $0.55, $0.578, $0.624
Key Support Levels: $0.473, $0.425, $0.41
- Spot Price: $0.50
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/ripple-price-analysis-prediction-february-6-xrp-rolls-back-to-bottom-can-it-foot-a-fresh-increase/