Altcoins
XRP Price Prediction – Unexpected Movement May Help Altcoin IF…
- XRP saw its shorter-term market structure and momentum reverse to the downside
- Despite strong selling pressure, there is a chance of recovery
XRP has been limited over the past ten months. It has formed a smaller range over the past couple of months and has shown no signs of to burst of this range at the time of publication. In fact, technical indicators suggested that a price rebound from $0.514 could happen.
Alas, this did not happen. XRP fell 14.6% on June 7, after rebounding 10% from its lows, signaling an impulsive move driven by news. What can altcoin traders expect next?
Lower average delay was lost
Source: XRP/USDT on TradingView
The two-month range (yellow) spanned from $0.47 to $0.56. The mid-level at $0.514 served as support early in the week, but Bitcoin on Friday [BTC] crash dragged XRP down. This reversed the lower time structure in a bearish manner.
OBV has been on a downtrend since April. It attempted to recover in May, but over the past ten days it has reached new lows. This revealed that even though XRP was above the mid-level of the short-term range, buying pressure remained weak.
The RSI on the daily chart was also below 50 neutral, signaling an ongoing downtrend. This, combined with the loss of the $0.5 psychological zone, could see XRP fall as low as $0.45.
Assess the chances of another sharp decline
Source: Hybloc
The price action chart and technical indicators have signaled a bearish trend. On the other hand, the liquidation chart revealed that traders might want to counter-trade the downtrend. Liquidity pockets down to $0.45 were also wiped out.
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The next big liquidity group sits at $0.58, which is the mid-level of the 10-month range. Therefore, although it would be counterintuitive, it seemed likely that XRP could climb as high as $0.58 in June before another rejection.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.