Is a Crash Imminent as Buyers Struggle to Hold XRP Price?
The price of XRP is facing a significant challenge as buyers struggle to maintain its value. The failure to assert bullish dominance over the supply zone has resulted in a sharp decline, with Ripple’s price dropping to $0.60. This setback has dashed hopes of a rounding bottom breakout, but there is still optimism for a bullish trend towards $1.
In the 1-Day chart, the falling XRP price finds support at the 50-day EMA after descending from the $0.70 supply zone. This downtrend has led to the formation of a falling channel pattern, with a 13% discount in the last 15 days. Despite this, buyers are maintaining their dominance over the 50D EMA, leading to a potential bounce back above the $0.60 mark. The next target is the overhead supply at $0.70, which has been tested twice in the past 6 months.
In the short-term, a breakout from the falling channel will be crucial in predicting a bull run. If this breakout occurs and the price surpasses $0.70, the chances of reaching $1 will significantly improve. However, a reversal within the channel or from $0.70 could result in a drop to the $0.58-$0.60 range.
MACD Indicator: The MACD and signal lines are showing signs of a bullish reversal, with a potential positive crossover. The declining trend in bearish histograms suggests a high likelihood of a bullish comeback.
EMA: The 50-day EMA is providing bullish support and helping to sustain the XRP price above $0.60.
Will the XRP Price Reach $1?
In the short-term, the breakout from the falling channel will play a crucial role in determining whether the price of XRP can reach $1. If the breakout rally crosses $0.70, the chances of a significant price jump will improve. However, a reversal within the channel or from $0.70 could result in a drop to the $0.58-$0.60 range.