Earlier in the month, XRP declined to about $0.79 before resuming a wavy movement that sees it fluctuate between the $0.78 and $0.90 price range. But about a week later, the bears broke the $0.79 support.
While ripple price rallied briefly to retest the $0.79 price support, it continued its downward movement. Its retesting of the $0.79 price level proves that traders are selling enormously. As of this writing, the bears have broken out of the $0.65 low. About a month ago, the market started an uptrend and the bulls bought at the $0.65 price range. The good news is that ripple has another opportunity to rebound.
If the crypto market price rally continues, the Ripple price may eventually reach $1.20. Since the bearish break out from $0.65 has occurred, XRP will likely slump to a low of $0.36 or $0.39.
Ripple Technical Analysis
The 14-day period of the relative index strength (RSI) shows that XRP is at level 32. An indication that the market is now within its oversold region. Also, there has been an exhaustion of the selling pressure. The downward slope of the 21-day and 45-day simple moving averages (SMA) indicate a downtrend.
XRP/SMA Price chart. Source: TradingView
Main resistance points – $1.90 and $2.1
Main support points – $0.80 and $0.70
What’s Next for Ripple’s Move?
Ripple is on a downtrend, even though the bears broke deeper than the moving averages. Furthermore, the 62% Fibonacci retracement level was tested by a retracing candlebody. The inference from the retracement is that XRP will likely decline to the $0.29 price range or the 1.619 Fibonacci retracement extension range.
XRP Fibonacci retracement analysis. Source: TradingView
Compared with bitcoin, XRP is moving higher than the 7-day and 21-day SMA’s within the edge of the channel. However, the bearish trend might continue as sellers keep pushing the price below the channel till it is below the 1400 support levels.
XRP/BTC chart. Source: TradingView
Is This a Good Time to Buy XRP?
XRP is one of the most affected cryptocurrencies during the current decline in the entire crypto market. It has lost 33% of its value in the past seven days and 17% in the last 24 hours. Right now, the trading price for XRP is about $0.57.
However, it seems like some buyers are interested in investing in this asset during this downward period. Reports of more bitcoin mining clampdown in Sichuan province means bitcoin mining operations in the country have reduced by over 90%. Since China mines the largest amounts of bitcoin, the leading cryptocurrency’s price might keep declining and affect other virtual assets too.
Also, the Ripple-SEC case will likely drag on till at least the end of August 2021, when the next court sitting will take place. It might take some time for an uptrend to happen, given that the current price is far off the $0.81 pivot point.
These factors might give investors a reason to buy the dip now and enjoy the pump later on.