Fears of a major decline are unwarranted
- The XRP price pull continues to be absent as the stress of the impending $ 0.76 support increases daily.
- The daily ripple volume has not recorded a day above the 50-day average since May 23.
- The SEC case continues to overshadow the digital asset, especially in times of price pressure.
The price of XRP remains stuck in a psychologically significant $ 1.00 range and the neckline of a multi-year inverted head-and-shoulder pattern at $ 0.76. However, a lack of technical clues leaves foamy predictions aside until directional confirmation can be gleaned from the charts.
XRP price may wait for collective improvement in altcoins
The XRP price displayed a similar passivity and lack of direction as most altcoins. Ripple was not inspired by the 30% rise in the price of Bitcoin, instead preferring to be limited between two intimidating levels, the neckline of an inverted head-and-shoulders pattern at $ 0.76 and $ 1.00.
The range has not been accompanied by any signs of accumulation or distribution, increasing the likelihood that the price of XRP will remain stuck in the prevailing price range for the foreseeable future.
With the XRP price at an inflection point, it is imperative to consider both sides of the trade. On the long side, Ripple is free of any hurdles up to $ 1.00, creating a 20% gain for investors from the current price. Additionally, a daily close above $ 1.00 would introduce new bullish opportunities and targets, including a rally at the confluence of the 38.2% Fibonacci retracement of the May correction to $ 1.14 with the 50-day simple moving average (SMA) down to 1.16 a 37% gain from price at time of writing.
Ripple investors should use withdrawals up to the support level of $ 0.76 to increase position size in order to maximize portfolio gains. It provides a clear level of risk if the trade goes against them.
XRP / USD Daily Chart
A bearish view of the price of XRP is complemented by a minor head and shoulders pattern with a neckline close to $ 0.76, reinforcing the importance of the inflection point.
If the cleavage and $ 0.76 breaks on a daily close basis, then Ripple investors may consider bearish results for the XRP price. However, it is essential to note that before a test of the May 23 low at $ 0.65, there is the union of the weighted average price according to the anchored volume (anchored VAP) at $ 0.74 and the SMA. 200 days at $ 0.72.
Nevertheless, the risk of the price of XRP falling seems limited to 20% from the current price. This is not a very convincing argument for loading the portfolio with short positions.
The number of whale trades, which tracks transfers of $ 100,000 or more, argues for a neutral view of the XRP price and for investors to refrain from creating large short positions. In the past, jumps in the Ripple on-chain metric have reached significant highs as large investors liquidated their positions.
On a smoothed 30-day basis, Santiment’s whale trading count has just tested early March lows, suggesting whale-induced selling pressure has been exhausted. If so, the fall in the price of XRP should be limited to $ 0.76, or at most $ 0.72.
Number of XRP Whale transactions – Santiment
Ripple, unlike other altcoins, shows the sale is exhausted in the category of whale investors. Moreover, it comes with a range of tenacious support which should prove to be instrumental in maintaining the price of XRP if the cryptocurrency complex turns into another collective sell-off. Therefore, making bearish predictions that make the headlines is not warranted at this point.
Finally, the importance of the SEC v Ripple case should not be discounted given the XRP price projections. Until there is a settlement, as most viewers anticipate, the digital asset will not be made public and will not be available to trade on many major cryptocurrency exchanges. Both things are negatively priced as long as the deal remains on-line.
In the following video, FXStreet analysts highlight two key prices for investors to consider.