The XRP price hike stops near a key level that last caused a 65% collapse

The XRP price hike stops near a key level that last caused a 65% collapse – Mail Bonus

Ripple (XRP)’s continued rise in the risk of fatigue as its price tests the resistance level with a history of triggering a 65% price collapse.

XRP price increases by 30%

XRP prices rose almost 30% to $ 0.36 on June 24, four days after falling from $ 0.28, the lowest level since January 2021.

The Retracement rally symbol could reach $ 0.41 next time, according to its cup-and-handle pattern shown in the image below.

XRP / USD four-hour price card with “cup and handle” pattern. Source: TradingView

Interestingly, the indicator’s profit target is the same as the 50-day exponential moving average of XRP (50-day EMA; red wave).

XRP / USD daily price card with 50 day EMA raise target. Source: TradingView

High resistance barrier

The cup-and-handle bullish reversal setup tends to achieve its profit target with 61% success, according to long-time analyst Thomas Bulkowski.

But it seems that the case of XRP falls into the 39% failure spectrum due to the contradictory technical signal displayed by its 200-4H exponential moving average (EMA).

XRP’s 200-4H EMA (blue wave in the image below) has previously served as a strong distribution signal. Interestingly, in April 2022, the symbol tried to break through the wave resistance in question many times, only to face rejection in each attempt; it dropped by 65% ​​to $ 0.28 later.

XRP / USD four-hour price card with 200-4H EMA resistance. Source: TradingView

Continued cup-and-handle violations have stopped midway after the XRP retested the 200-4H EMA as a resistance on June 23rd. The symbol now awaits further confirmation of bias while there is a risk of a price reduction similar to what happened after April.

The overvalued XRP relative strength index (RSI), now above 70, also increases the possibility of a provisional price adjustment.

XRP LTF breakdown in progress

The shortcoming of the shorter timeframe XRP is in line with the huge bearish setup of the longer timeframe.

As Cointelegraph reported earlier, XRP has gone into a breakdown phase after leaving its declining triangle structure in early May.

As a rule of technical analysis, its triangular breakdown should have it falling by as much as the maximum height of the structure, which puts its negative target close to $ 1.86.

XRP / USD weekly price chart with “declining triangle” layout. Source: TradingView

In other words, another 50% price reduction for XRP could occur at the end of July this year.

The macroeconomic risks posed by the Central Bank’s hawkish policies further strengthen the bearish bias of the XRP. The XRP / USD pair has typically traded lower along with riskier assets in 2022, with a correlation coefficient with the Nasdaq Composite, which was 0.90 as of June 24th.

XRP / USD weekly correlation with Nasdaq. Source: TradingView

Rating 1 means that the two properties move in perfect synchronization.

Connected: Nearly $ 100 million goes out of US cryptocurrencies ahead of hawkish monetary policy

On the other hand, expectations that Ripple would win a lawsuit filed by the US Securities and Exchange Commission (SEC) for “allegedly” selling unlisted securities could deny the bearish setup.

That said, XRP could return to $ 0.91 by the end of this year if the continued withdrawal continues. Interestingly, the symbol has bounced after testing long-term rising trend line support, as shown below.

XRP / USD weekly price. Source: TradingView

The jump has also followed the weekly relative strength index of XRP (RSI) below the 30-volatility threshold, indicating a potential buying opportunity.

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