Ripple Hanging by a Thread at $1, XRPUSDT May Still Recover on Rising BTC Prices
Ripple is changing remittance and how banks transact using the distribution of the blockchain technology.
It is also one of the oldest blockchain projects and therefore has a solid foundation with a vibrant community.
There might have been regulatory headwinds, but Ripple’s valuation is decent.
When writing, the XRP price is perched at seventh in the market cap leader board, meaning it is one of the most liquid projects in the world.
Ripple Market Performance and Price Status
Fundamentally, Ripple has a broad use case and has found adoption from banks and payment processors.
Therefore, its liquidity is a drawer for traders even after some exchanges suspended XRP trading, citing a lack of regulatory clarity on its status.
The XRP price is still solid when writing.
However, the coin has been sliding due to the market cool-off, retracing from recent highs.
From the daily chart, the XRPUSDT price is around the $1 round number. The psychological support anchors price action in the short term.
Therefore, sellers must reject lower lows from spot rates for the uptrend to be valid.
A pullback from spot rates to over $1.20 and $1.30 may be the base for another leg up above $1.40.
Then, the Ripple price will pull away from the sideways movement, sapping the upward momentum.
Conversely, if sellers take charge and bulls lose $1, the odds of XRP dropping to $0.85 in continuation of last week’s losses would only be amplified.
Notably, the $0.85 zone is of utmost important reading from price performance in the daily chart.
This line flashes with September 2018 highs and has defined the XRPUSDT price action in the past few months.
Ripple at Long-term Support, Traders Must Be Patient
On Twitter, one trader notes that XRPUSDT prices are at a key primary support at around $1—as mentioned earlier.
While XRPUSDT momentum in the 4HR chart is turning bullish, XRP is hanging by the teeth at spot rates.
$XRP retesting old support and the momentum on the 4h looks like it's slowly starting to turn around. So we'll see what happens in the next few days.#XRP #XRPusdt #xrpcommmunity pic.twitter.com/rz7yxjCE1R
— Crypto Koolaid (@Koolaid_crypto) November 24, 2021
As such, he says the best strategy going forward is to take a wait-and-see approach and “see what happens.”
Currently, XRP prices are at an important reaction point whose outcome can define the short to medium-term trend.
Losses below the support trend line and $1 may see XRP sellers swing to action, driving the coin to $0.85—or worse.
On the reverse side, there would be hope for buyers if XRP rejects selling pressure. The bounce from $1 to above $1.20 might be the catalyst for another leg up towards $1.40—or more in subsequent sessions.
XRP Prices are Bearish
Yet, not every trader is upbeat on Ripple and XRP.
From price action in the 4HR chart, one analyst on Trading View remains bearish on the coin.
There are higher lows. As XRPUSDT trickles lower, sellers appear to be doubling down in smaller time frames.
According to the trader, the XRP price might slump. In that case, it presents an opportunity to unload, targeting $0.95 and $0.93 in the short term.
On the other hand, gains above $1.10 will nullify this bearish outlook.
Ripple May Be Bottoming Up
On YouTube, one trader thinks XRP prices are bottoming up.
Notably, he cites the potential of XRP rejecting lower lows, bouncing higher as BTC recovers.
Complementing this outlook is the bullish divergence pattern with the RSI, which is at oversold territory.
A close above $1.10, the analyst says, may see XRP inch higher back to $1.20 and $1.40 zone.
Charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.