Ripple Could Drop 9% Further After Failing To Hold On To $0.75
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Ripple (XRP) price has come under intense selling pressure after losing the temporary support around the $0.75 zone. XRP price prediction is most definitely directed to the downside even as fear grips the entire market. The Crypto Fear and Greed Index stands at 18/100 , pointing to Extreme Fear which is a sign that investors are too worried.
XRP Price Prediction: A Return To $0.6838 Looms
Ripple price trades at $0.7459, 31% below the December 23 high around $1.0750. After turning away from the aforementioned high, XRP price action has formed a descending parallel channel on the daily chart by recording a series of lower highs and lower lows.
A descending parallel channel is a significantly bearish channel suggesting that Ripple may drop further if it continues trading within the confines of the channel.
Therefore, failure to hold on to the immediate support at $0.7459 provided by the middle boundary of the channel could see the price of the cross-border remittances token drop to tag the lower boundary of the prevailing channel at $0.6838. This move will represent an 8.87% drop below the current price.
XRP/USD Daily Chart
Note that the bearish XRP price prediction is validated by the current pessimistic sentiment that has gripped the entire market causing the entire crypto market capitalization to drop below the $2 trillion mark, according to data from CoinMarketCap.
Moreover, the down-sloping moving averages and the position of the Relative Strength Index (RSI) at 32.98 validate XRP’s bearish thesis. Notice that the bearish momentum will gain more traction once the RSI enters the oversold region.
The downward movement of the Moving Average Convergence Divergence (MACD) indicator and its position below the zero line in the negative region also adds credence to Ripple’s pessimistic outlook.
Looking Over The Fence
The bearish XRP price prediction will be invalidated if bulls hold on the immediate support at $0.74596 embraced by the middle boundary of the descending channel. If this happens, Ripple could rise above the $0.80 psychological level to tag the upper boundary of the channel at $0.8096 or the moving averages above it.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nancy is a successful finance, crypto analyst and content writer with many years of writing experience finance and blockchain fields. Nancy has been producing quality content for websites in the cryptocurrency industry including Krptotrends, Forexcrunch, InsideBitcoins and Economywatch. She is a Certified Cryptocurrency Expert (CCE) from Blockchain Council. Her interests are in cryptoasset research and technical analysis, Fintech, Blockchain, DeFi, NFTs and Personal Finance.
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