Ripple Price Skids 14% But XRP Finds Buyers at Trend Line Support

Fibo Quantum

The Ripple Price encountered heavy selling over the weekend, despite Bitcoin holding above $60k and Ethereum closing in on $4k. Ripple (XRP/USD) dropped from a high of $1.187 on Saturday to a low of $1.017 on Sunday morning before bouncing as it approached the 200-day moving average and rising trend line support. This morning, the price is marginally higher. However, XRP has been the worst-performing cryptocurrency in the top ten over the last seven days.

Despite Bitcoin’s run at the May high lifting the combined crypto market cap to over $2.5 trillion, Ripple is currently valued at around $51b, almost $30 billion less than in April, and $70b below the 2017 peak. Nonetheless, Ripple is currently the sixth-largest cryptocurrency. However, 7th-placed Solana, at $48.6b, is closing the gap on XRP. the recent performance is surprising, considering Ripple labs recently announced partnerships with Banco Santander and the central bank of Bhutan, and joined the Digital Pound Foundation. The positive press hasn’t produced an upswing in the Ripple price, and as a result, XRP continues to trade broadly sideways in a narrowing channel.

XRP Price Forecast

The daily chart shows XRP is trading in a narrowing triangle pattern. A rising trend line from the July low currently supports the price at $1.001. Notably, Sunday’s sell-off came close to tagging the trend line but was reversed ahead of the 200-day moving average at $1.019. The 200 DMA and the trend combine for significant support ahead of the psychological $1.000 threshold. As long as Ripple maintains trend support, the bulls are in with a shot. Furthermore, the price has reclaimed the 50 DMA at $1.0841 this morning, which may encourage a run to trend resistance.

A descending trend line from the April high is capping XRP at $1.262. Successful clearance of $1.262 clears the path to the September high of $1.410. However, considering the Ripple price’s poor performance, the downside looks likely. Below the trend line, the 100 DMA could offer bulls some respite, although a break of trend should lead to a test of the September low at $0.0858. For now, the price is not giving off a strong signal in either direction, and therefore, a price prediction is not possible at this time. Therefore, traders should remain patient and wait for the technicals to play out.

Ripple Price Chart (XRP/USDT)

For more market insights, follow Elliott on Twitter.

Wood Profits Banner>