XRP price looks primed to print higher lows in the near term
An upside correction to follow with XRP/USD retesting the $0.783 resistance
Jaipur (CoinChapter.com) — After bouncing 32% from the $0.5 support to near $0.74 in the last seven days, the XRP/USD pair is taking a breather. A new session of successive lower lows could follow. But the impending bearishness will be transitory, notes Twitter-based analyst, RESEARCH 24/7.
The analyst predicts a roughly 20% upside for Ripple’s cryptocurrency. But only after it has fulfilled its quota of retracement from the current local top. A classic bearish pennant formation defining last week’s price action confirms the bearish bias.
XRP/USD Pair To Print Higher Lows Before Hitting $0.783, Source: RESEARCH 24/7
In the said scenario, the price of the 7th largest cryptocurrency could drop down to the $0.59 level. If bearish momentum continues further, even a retest of $0.58 or even $0.5 price is possible.
Although, RESEARCH 24/7 explains that liftoff will follow post the dip.
Ripple token prices could soar to spot rates near the $0.734 level. Another correction could take token prices down to $0.65 (higher low). But as XRP prints this higher low, “the resulting upswing for XRP price is expected to set up a higher high at the 70.5% Fibonacci retracement level at $0.783, coinciding with the swing high formed on June 14.” But how?
RESEARCH 24/7, who goes by the handle “smallcappick,” stated that clues of XRP’s bullish upsurge are entrenched in Fibonacci retracement levels.
On May 23, the XRP/USD pair corrected 67% in the crypto market crash, from the highs at $1.9575 to find support at $0.65. But in the recovery attempts that followed, the $0.783 acted as a launchpad and then as crucial support until aggressive bearish pressure flipped it into resistance on June 19.
Therefore, flipping this support turned resistance level back to support could be a significant turning point for XRP price. Especially to turn the tide in favor of bulls. In Fibonacci retracement calculations, $0.783 coincides with the 70.5% Fibonacci retracement level. It lies equally between the 62% and 79% Fibonacci retracement levels, which coincide with $0.82 and $0.744 price points.
So, this is ideally a Fibonacci retracement range bounded by swing highs. In technical charts, swing highs are scenarios when an asset prints two consecutive highs (green candles) after a single high.
Smallcappick makes the bullish case for XRP/USD spot rates rebounding to the 70.5% Fibonacci retracement level or the $0.783 resistance level. And how is this bullish bounce supposed to work out?
Subsequent higher lows could lead to the formation of ascending triangle or symmetrical bullish triangle formations. A breakout from any of them could lead to XRP’s 20% flight to $0.783.
Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.
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