The general correction in the crypto market, Ripple (XRP) has also affected the price. XRP, which has been trading below $1, an important and psychological level for a while, has started to experience intense selling pressure after it recently lost the important ‘temporary support’ at the $0.75 level.
Analysts updated their price forecasts as ‘downward’ after the failure to hold this support level. The ‘Crypto Fear and Greed Index’ stands at 18/100, pointing to ‘Extreme Fear’, a sign that investors are very worried.
Preparing to Return to $0.6838!
Ripple price is trading at $0.7459, 31% below the December 23 high of $1,0750. XRP price The move created a descending parallel channel on the daily chart, recording a series of lower highs and lower lows after moving away from the high we mentioned above.
A descending parallel channel represents a significantly bearish pattern, which will reinforce the notion that Ripple could drop further if it continues to trade within the confines of the channel.
Therefore, failure to continue the immediate support of $0.7459 provided by the middle border of the channel could cause the price of the cross-border remittance token to plummet to tag the lower border of the current channel at $0.6838. This move would represent an 8.87% drop from the current price.
XRP/USD Daily Chart
According to data from CoinMarketCap, the bearish trend XRP price forecastIt is confirmed by the current pessimistic sentiments that have gripped the entire market, causing the entire crypto market cap to drop below $2 trillion.
Also, the downward sloping moving averages and the Relative Strength Index (RSI) position at 32.98 confirm XRP’s bearish thesis. You should note that the bearish momentum will gain more traction once the RSI enters the oversold zone.
The downward movement of the MACD indicator and its position below the zero line in the negative zone also reinforces Ripple’s pessimistic outlook.
On the other hand, bearish predictions in the XRP price prediction will be invalidated if the bulls hold the immediate support at $0.74596, which is supported by the middle border of the descending channel. If this happens, ripple could climb above the psychological level of $0.80 to label the channel upper bound at $0.8096 or the moving averages above it.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.