XRP Faces Potential Bearish Breakout Amid Market Volatility And Resistance
- XRP may see a brief rally to $0.55, but failure to break $0.5778 could lead to a drop between $0.50 and $0.48.
- Technical analysis suggests XRPs current upward trend might soon reverse, with a possible bearish breakdown ahead.
- Despite short-term gains, XRP has dropped 12.52% in the last week, highlighting ongoing market volatility.
XRP is currently in a crucial phase, with recent market analysis indicating that the cryptocurrency is in for some choppy trading over the coming days. After a minor fluctuations in the market, XRP has now moved to the higher side of the expected volatility. The technical indicators suggest that this could be a breakout of a bearish pattern in the coming days.
In a recent YouTube video, Cheeky Crypto highlighted that XRPs Elliott Wave Theory, the current upward movement may be about to end and be followed by a fifth wave to the downside. At the moment, Ripple token is being capped at the 200-hour exponential moving average and the only support is found at the 50-day simple moving average.
XRP Potential Rally Ahead
However, there is still room for a brief rally up to $0.55 before the bears take charge again, unless of course XRP can manage to break through the $0.5778 level. This level if not broken down the price might be retracing to a range of $0.50 to $0.48.
The prolonged trading outlook for XRP is still a little bearish. Short term the outlook still looks relatively promising but the prevailing bearish sentiment indicates that a breakdown is more probable unless things change on the market.
Impact of SEC Decision
To this end, traders are encouraged to persevere with the analysis of the general economic environment and the most recent decision by the United States Securities and Exchange Commission (SEC) in the Ripple case as it is likely to determine the future of token. Therefore positive outcome may generate positive wave, however, in the case of no such news the bearish trend may persist.
At the moment, XRP is trading at $0.5412 per coin which is 1.04% higher than the price that was observed a day ago. This short-term rise give a minor lift to its value but the overall market trend is still unclear.
Source: TradingView
Over the last week alone, XRP has depreciated by -12.52% which goes to show that the market is still quite volatile. It therefore has a 24-hour trading volume of $1,262,782,178 which shows that, even in the light of the recent volatility of the prices, there is a lot of activity.
Given that market conditions are still being affected by a number of technical factors, XRP traders need to be on the lookout. Since price action is trading near crucial resistance levels, one has to be very cautious with the management of risks in case of a price reversal. In the next few days the market may rise or fall but a bearish break through is more probable if no significant changes are made.
Though XRP is trading in the green, the long-term view suggests possible increased volatility. Unless the market situation changes, it is advisable to expect price volatility and a bearish trend in the near future.
Read more: https://www.tronweekly.com/xrp-faces-potential-bearish-breakout-amid/
Text source: TronWeekly
