Ripple’s XRP continued to dip amid the overall crypto market meltdown over the past month. It has lost 10% since then and recently initiated another leg down. A lower low movement is in play, but sell volume currently seems insignificant.
Lower lows and low highs patterns are common setups that precede a bearish reversal and corrections. But the level of trading activities determines how fast they come into play.
XRP started to form this pattern after a year high at $0.585 in late March. It extended the bearish actions and was able to tap $0.433, retesting the January resistance level as support after four weeks. Though the setup looks weak, it has not shown any signs of exhaustion at the moment.
Following a small recovery in the past week, it encountered resistance and initiated another leg down. The price level for this fresh lower-low movement is targeted at $0.4, which sits right on the white-ascending support line.
Right now, the daily volume indicator is on the fall. If the bulls can regroup and act upon the recent low, XRP could regain strength for a fresh increase. As of now, the bears are taking charge and more lows are getting ready to be reclaimed if the bulls fail to show commitment.
XRP’s Key Level To Watch
XRP is currently trading above the $0.433 support level. Below it lies the $0.40 support level. If the price cracks lower, the next stops for bears would be $0.37 and $0.35.
The $0.465 level that serves as a minor support in the past weeks is now held as resistance. If the price recovers above this resistance, higher resistance levels to watch are $0.50 and $0.55. A full recovery could bring the price to March’s resistance of $0.585 before breaking out.
Key Resistance Levels: $0.5, $0.55, $0.586
Key Support Levels: $0.433, $0.40, $0.37
- Spot Price: $0.46
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: Photo by Kanchanara on Unsplash // Image Effects by Colorcinch
