Tech

Here’s Why XRP Price Could Extend Correction Trend; Back to $0.6?

07/23/2023
Bitcoin Ethereum News

Published 30 mins ago

For over a week, the XRP price resonated in a narrow sideways trend limited between two converging trendlines. This consolidation came after a massive rally on July 13th and was meant to stabilize the price trend and prolong the bullish trend. However, a breakdown from the pattern’s support trendline indicates, the 4th largest cryptocurrency would need longer correction.

Also Read: XRP Price Plummets 5% in 24 Hours – Is This The End of The Road for Bulls?

XRP Price Daily Chart:

  • A support trendline breakdown set the XRP price for a 10% drop
  • The $0.669 support stands as a strong demand zone for the XRP price
  • The intraday trading volume in the XRP is $1.87 Billion, indicating a 27% gain.

XRP PriceSource: Tradingview

In the 4-hour time frame chart, the XRP price showcased the recent consolidation as the formation of a pennant pattern. However, on July 22nd, the coin price gave a bearish breakdown from the pattern’s support trendline.

A bearish outcome from a bullish pattern is a strong sell signal indicating a potential downfall in the near future. By the press time, the XRP price trades at $0.74 with a gain of 1.32%. This bullish uptick could retest the breached trendline to check price suitability for lower prices.

This post-breakdown fall could tumble this altcoin market value 9.5-10% down to hit $0.669. 

Will XRP Price Plunge Back to $0.6?

The XRP price potential downfall to $0.669 would face strong support as aligned with the 50% Fibonacci retracement level. In technical analysis, a correction of 50% is still considered healthy and suitable to resume the prevailing bullish. However, a breakdown from this support plunged the price by 8.6% and tested the combined support of $0.6 and 61.8% FIB.

  • Exponential Moving Average: The 20-day EMA at $0.669 increases the support strength of this level.
  • Directional Movement Index: A significant gap between the positive crossover state of the DI+(blue) and DI-(orange) slope indicates the bullish momentum is intact.

From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Source: https://coingape.com/markets/heres-why-xrp-price-could-extend-correction-trend-back-to-0-6/