XRP Price Analysis: XRP/USD May Have to Return Back Down to $0.30-$0.25 Range Again
- Ripple’s XRP has been hammered in recent trading, but the selling may not be done just yet.
- Next major area of support is eyed at a known area of demand, the $0.3000-$0.2500 price region.
XRP/USD: 20% Sell-off
Ripple’s XRP like many of its peers has faltered of late in its attempt at maintaining upside momentum for price recovery. A freak amount of volatility hit XRP/USD on 10 January. At the open of the daily candle, an aggressive spike to the upside was initially seen. The price saw a knee-jerk move of 8% to the north, printing a high at $0.4050, before quickly retracing. This was the highest it had been since 26th December, when the price was cooling again.
After the detailed initial move at the open, a strong wave of selling pressure was then seen. The intensity of sellers was seen throughout the Asian session and all the European hours. XRP/USD had been hammered as much as 20% from the mentioned high print, down to the session low at $0.3230. This was the lowest the price had been since 17th December 2018, during the most recent bull run at the time. During this period of high volatility on 10th January, volumes were spiking aggressively, reaching the highest since the back end of November 2018.
XRP/USD Bears Remain in Control
XRP/USD is currently moving within a near-term form of consolidation mode. This isn’t too surprising given the intensity of the above-described downside pressure. However, recent price behavior looking via the 60-minute chart view, indicates further vulnerabilities to the downside. A bearish flag pattern structure can be observed: the big pole of the initial move south, now the flag formation in this current consolidating state of trading.
Support to the downside should be noted at $0.3300, the lower acting trend line of the flag. To the upside, immediate resistance can be seen at $0.3440, which is above the ceiling of the detailed structure. If it plays out to the textbook technical pattern, then this is subject to further downside pressure. A breach of the flag to the downside will call into action a very known strong demand zone. This area for buyers is not seen until $0.3000-$0.2500 range. XRP/USD last traded down here from 7-17th December, before catching a strong bid tone.
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.
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