The crypto market experienced a sudden surge today, with the majority of major cryptocurrencies displaying a green candle. However, XRP price reveals an intraday loss of 0.17%, indicating that sellers maintain a strong grip on this altcoin. The formation of this red candle at a crucial resistance level suggests that bears are likely to extend the correction phase lower.
Looking at the XRP price daily chart, the downward trend may persist as long as the falling channel pattern remains intact. A breakout from the upper trendline of this pattern could present traders with a long entry opportunity. The intraday trading volume for XRP sits at $513.4 million, representing a 15% decline.
XRP currently trades at the $0.46 mark, with a bearish hammer candle forming at the resistance trendline of the channel pattern. This chart setup has seen a correction phase in the altcoin for the past two months, providing bears with a prime opportunity to sell on bullish upswings. The coin price has bounced off both downsloping trendlines of this pattern three times, validating its influence on market participants. If broader market sentiment becomes bearish, the XRP price is more likely to revert lower.
In the event of a potential bearish reversal, prices could plummet by 18-19% to hit the support trendline at $0.37. Conversely, investors interested in entering the market should wait until the price breaches the channel pattern on the upside.
So, will the XRP price plunge to $0.37? A bearish drop from the resistance trendline of the channel pattern usually ignites a decline to the lower trendline. With sustained selling, the XRP price may gradually fall to $0.375, encountering minor obstacles at $0.43 and $0.41.
Though the market experienced a recent recovery, the Super trend indicator displays a red film that suggests the sellers have the upper hand. Additionally, the Moving Average Convergence Divergence (MACD) has a wide gap between the blue and orange signal line in a bearish alignment, indicating that buyers are struggling to gain control of the trend. These indicators highlight that although crypto markets are flourishing, XRP’s future remains uncertain with potential downside risks. Prospective investors should remain cautious and conduct thorough market research before making any decisions about investing in XRP or other cryptocurrencies.
Source: Coingape
