XRP Price Analysis: XRP/USD Finally Approaching the Real Big Bull Buying Levels

  • XRP/USD tanks to drop below $0.3000 mark, lowest level since September.
  • Eyes are on the big bull buying area of $0.3000-$0.2000. Historically has proven to see large interest come into play at this level.

XRP/USD was slammed aggressively this week, as selling pressure heavily intensified late Thursday into Friday. The market resuming the chunky downside the was seen throughout the month of November. As a recap, this bearish trend started on 7th November, where the price was up at the heights of $0.57. There was hope across the market at the time, with XRP/USD signaling it was back on its journey to the north. That optimism has since unravelled with the total market plunging over the course of the past month.

Failed Bottom

XRP/USD 4-hour chart

On 25th November, the sellers ran very much exhausted, following the excessive weeks of selling. The price managed to form a bottom, which was seen at $0.3290. A decent bounce materialized, as the bulls capitalized in driving the price up to the $0.40 territory. However, being very much short-lived, with the price running into sellers, which were containing any upside. The days after that original push to test $0.40 on the 28th November, were weighted to the downside. XRP/USD has been edging lower since, failing to maintain any small upside seen. As a result, the recent mentioned bottom was breached.

Big Bull Buying Area

Given then the recent break lower, eyes are now in search of another ‘bottom’ or buying area to see XRP/USD elevate again. As detailed in an article two weeks ago, the next major territory that is going to interest bulls, ranges from $0.3000-$0.2000. The observation of that previous mentioned article was that there is one last barrier to this vital area. This has now been exposed by the bears, exacerbating the move to the downside. The last time XRP/USD fell to these depressed levels was on 11th September. After spending some days consolidating within this $0.25-$0.30 price region, XRP/USD aggressively shot higher.

Bears Love Selling Rallies

XRP/USD monthly chart

XRP/USD has really been in decline since the beginning of the year. January is when the heavy selling kicked in. The market has failed to fully come out of this, and there has only been two months where the price managed to close in the green. This was observed in April and in September, but these month rallies were sold with further aggression by the bears. Keeping all this in mind and the severity of the moves lower, it would not be surprising to see XRP/USD really shoot higher once the bulls come back into the picture.

Bulls Eyeing Another Rocket to Space

XRP/USD weekly chart

There have been two historic periods when XRP/USD has been sent into the skies, from current levels. Back on December 12th, 2017 to 4th January 2018, a huge bull run was seen, where the price rallied some 1,200%. This was within the $0.20 territory, up to $3.25. Most recently, on 18th September 2018, XRP/USD shot from $0.25, gaining over 190%. It reached a high up at $0.7925, where profit-taking kicking in.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.

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