Published December 8, 2022
A bearish breakdown from the inverted flag pattern releases the trapped bearish momentum in the Ripple coin. Currently, the altcoin is in a retest phase, trying to validate whether it can sustain this breakdown. Moreover, the XRP price may undermine the November recovery if the overall market sentiment remains bearish.
Key points:
- An inverted flag pattern breakdown sets the XRP price for a 6% fall.
- The crucial EMAs(20, 50, 100, and 200) trading above the coin price creates multiple resistance against a price rally.
- The intraday trading volume in the XRP is $2.3 Billion, indicating a 16% gain.
Source- Tradingview
The last few week’s recovery rally in the crypto market pushed the majority of altcoins to higher grounds, including Ripple(XRP). As a result, the coin price rallied from $0.322 to $0.41 high, registering a growth of 27.6%.
However, the daily chart shows that this price recovery was a part of a bearish pattern inverted flag. In theory, a recovery phase in the pattern is a short break before the coin price resumes its prior downtrend. Moreover, a breakdown below the pattern’s support trendline signal the completion of this pattern.
Thus, today, the crypto market witnessed aggressive selling and tumbled the XRP prices by 2.22%. The bearish candle breached the support trendline indicating the sellers are ready to pull the price altcoin to lower levels.
A daily candle closing below the trendline will accelerate the selling momentum and plunge the coin 6% down to hit the $0.36 support. However, if the selling pressure persists, the prices may drop to the $0.32 accumulation zone.
Technical Indicator
EMAs: the XRP price trading below the crucial EMAs(20, 50, 100, and 200) projects an established downtrend. Moreover, 20-and-50-day EMA maintains a dynamic resistance against a bullish rally.
Relative Strength Index: The daily-RSI slope nosedive below the neutral line and 20-SMA reflects the increasing bearishness among market participants.
XRP intraday price levels
- Spot price: $0.38
- Trend: Bearish
- Volatility: Medium
- Resistance level- $0.38 and $0.41
- Support level- $0.35 and 0.32
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.
