The XRP price gives a bearish breakout of the pennant formed in the daily chart resulting in a downfall of 18%. The free fall takes a dip to $0.70 before showing a bullish recovery of 10% in the past 48 hours. Will this recovery set a new bullish path or a post-retest reversal is inevitable?
- The daily MACD and signal lines give a bearish crossover
- The XRP price breaks the range formation within the 100 and 50-day SMA
- The 24-hour trading volume in the Ripple token is $2.86 Billion, indicating a 33.78% loss.
Source-Tradingview
The XRP price formed a pennant with the 50% rally ranging from $0.58 to $0.89, which later got sucked into a triangle pattern. However, the sudden surge in the selling pressure on 21st February broke the support trendline.
The free fall resulted in the altcoin price testing the $0.70 horizontal level with the lower price rejection avoiding a closing below it. Coming to the bullish reversal observed over the last 48 hours, the recovery comes as a retest of the bearish breakout which has high chances of going down the bearish road.
The downsloping crucial SMAs(20, 50, 100) indicate a bearish tendency. Moreover, the 100-EMA provides a dynamic resistance to XRP buyers,
The XRP Rally Ready To Retest The Fallout
Source- Tradingview
The sudden reversal in the altcoin price prints a short-term bullish rally on the XRP/USD chart. The rally is on the verge of retesting the support trendline that shows high reversal potential. The reversal may break below $0.70 and reach the $0.59 mark.
The daily MACD and Signal lines project a bearish crossover, with the bearish histograms gradually gaining momentum.
Alternately, If XRP prices sustain above the $0.77 mark or the support trendline, we can see the buyers entering to accelerate the prices to the $0.88 mark.
Disclaimer
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.
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Source: https://coingape.com/markets/xrp-price-analysis-breakout-or-fakeout/