Outside Source
Key Support level: $1
Key Resistance level: $1.2; $0.85
XRP’s price has broken below the bullish parabola (marked yellow) in our last analysis. Even though recovery is still possible, the current price action indicates that XRP is sitting on the $1 support, which acts as the last defense before a potential drop towards $0.85. The key resistance level to consider is $1.2.
Technical Indicators
Volume: The volume is flat and gives no reason to expect a rally in the near future. Moreover, in the last three days, the volume closed with a red bar.
RSI: The RSI on the daily timeframe is falling. This confirms that the immediate trend is bearish.
MACD: The histogram on the MACD has moved on the negative side, and the moving averages completed a bearish crossover. This is not a good signal for the bulls, indicating that the bears have control of the price, which may even test lower support levels, such as $0.85.
Bias
An argument can be made for the bulls that if $1 continues to hold, the price might recover. On the other hand, though, a break below that level would turn the bias bearish. This has not happened yet. However, there are some early warning signs that this may be the case, as shown by the indicators. If that happens, then the price could decrease to $0.85.
Short-Term Price Prediction for XRP Price
Considering the current price action, it doesn’t seem like XRP can retest the key resistance at $1.2 any time soon. Therefore, the price is more likely to remain close to $1 in the near term, based on the lack of volume and momentum. At the same time, it might be good to prepare for a possible break of support which would push XRP to lower levels as indicated above.
This article first appeared at CryptoPotato
