Риппле'с (XRP) ongoing upside retracement risks exhaustion as its price tests a resistance level with a history of triggering a 65% price crash.
XRP price rebounds 30%
XRP’s price gained nearly 30%, rising to $0.36 on June 24, four days after rebounding from $0.28, its lowest level since January 2021.
The token’s retracement rally could extend to $0.41 next, according to its чаша и дршка pattern shown in the chart below.
Interestingly, the indicator’s profit target is the same as XRP’s 50-day exponential moving average (50-day EMA; the red wave).
Major resistance hurdle
The cup-and-handle bullish reversal setup tends to meet its profit target at a 61% success rate, према to veteran analyst Thomas Bulkowski.
But, it appears XRP’s case falls in the 39% failure spectrum because of a conflicting technical signal presented by its 200-4H exponential moving average (EMA).
XRP’s 200-4H EMA (the blue wave in the chart below) has previously served as a strong distribution signal. Notably, in April 2022, the token attempted to break above the said wave resistance multiple times, only to face rejections on each try; it fell 65% to $0.28 later.
The ongoing cup-and-handle breakout has stalled midway after XRP retested the 200-4H EMA as resistance on June 23. Now, the token awaits further bias confirmation while risking a price decline similar to what transpired after April.
XRP’s overbought relative strength index (RSI), now above 70, also raises the possibility of an interim price correction.
XRP LTF breakdown underway
The downside scenario on XRP’s shorter-timeframe chart comes in line with giant bearish setups on its longer-timeframe chart.
As Cointelegraph covered earlier, XRP has entered a breakdown stage after exiting its descending triangle structure in early May.
As a rule of technical analysis, its triangle breakdown should have it fall by as much as the structure’s maximum height, which puts its downside target near $1.86.
In other words, another 50% price drop for XRP could happen by the end of July this year.
50,000,000 #КСРП (16,249,045 УСД) пребачен из Риппле-а у непознати новчаникhttps://t.co/FalGAzxNxg
- Обавештење о китовима (@вхале_алерт) Јун 23, 2022
Macro risks led by the Federal Reserve’s hawkish policy further strengthen XRP’s bearish bias. The XRP/USD pair has typically traded lower in tandem with riskier assets in 2022, with a correlation coefficient with the Nasdaq Composite, sitting at 0.90 as of June 24.
A score of 1 means that the two assets moves in perfect sync.
Релатед: Скоро 100 милиона долара излази из америчких крипто фондова у очекивању јастребове монетарне политике
Conversely, anticipations that Ripple would win the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) for “allegedly” selling unregistered securities could negate the bearish setups.
Толико сам навео више од годину дана @Риппле #КСРП присталице потцењују негативан утицај који је имала тужба СЕЦ. Б/ц Риппле је добро прошао ван САД и запошљава, итд., људи кажу другачије. Али КСРП се мора сматрати небезбедношћу у САД да би испунио своје обећање https://t.co/oBmiTQOWfJ
— Јохн Е Деатон (203 пратилаца Чувајте се преваранта) (@ЈохнЕДеатон1) Јун 22, 2022
That being said, XRP could rebound toward $0.91 by the end of this year if the ongoing retracement continues any further. Interestingly, the token has bounced after testing long-term ascending trendline support, as shown below.
The bounce has also followed XRP’s weekly relative strength index (RSI) decline below 30 — an oversold threshold, which signals a potential buying opportunity.
Овдје приказана стајалишта и мишљења су искључиво становишта аутора и не одражавају нужно ставове Цоинтелеграпх.цом. Сваки потез улагања и трговања укључује ризик, приликом доношења одлуке требало би да спроведете сопствено истраживање.
Source: https://cointelegraph.com/news/xrp-price-rally-stalls-near-key-level-that-last-time-triggered-a-65-crash