XRP is down 7% on the weekly chart. How low will it go?
Ripple (XRP) Price Predictions: Analysis
Key support levels: $1.2, $1
Key resistance levels: $1.4, $1.6, $2
Sellers Return
After some hesitation at the apex of this pennant (in blue on the chart), sellers returned in size and managed to take the price closer to the $1.2 support. At the time of this post, buyers are trying to push XRP into a bounce, but this may be short-lived.
This most recent drop comes after market leaders such as BTC and ETH broke below key support levels. This has pushed the market into new lows, and XRP was unable to defend against the renewed selling.
Volume Increases
While increasing volume during a price rally is bullish, increasing volume during a price drop is extremely bearish and suggests that this latest move has legs. This is why a test of $1.2 should be expected, or even $1.
On the 2-day timeframe, buyers controlled the price only once over the past two weeks. That shows sellers have absolute dominance right now, and this downtrend will take a lot of effort to reverse.
Bearish Cross Confirms This Drop
Since May 19th, the 2-day MACD has turned bearish, and the price has not stopped making lower lows. The histogram is also falling and picking up speed, which indicates that this downtrend is currently accelerating.
This means the bias is bearish and likely to continue for some time before any serious relief rally can be had. In light of this, wait for $1.2 or $1 before even considering an entry. The key resistance is at $1.4.
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