XRP price has a loss week following profit-booking by traders; is it ready to bounce back?
The daily MA 50 at $0.454 serves as crucial support for the XRP price, which fell below it as the cryptocurrency market declined. XRP continues to lose money, suffering losses on both a daily and weekly basis. Not just XRP but also the majority of the major cryptocurrencies have declined noticeably on a weekly chart since their most recent local highs.
The crypto market experienced losses last week due to traders booking profits. At the time of writing, XRP had dropped 13% over the previous week and was down 3% over the previous 24 hours at $0.4722.
XRP/USD 4-hour chart | Source: TradingView
XRP loses key support in market-wide slump
Most traders watch for signs that indicate if the current market downturn is a buying opportunity or if the trend has changed to negative as cryptocurrencies try to recover.
On the hourly chart, XRP attempted to break through the $0.4412 local support level falsely. The bar closure should be carefully observed. If it occurs close to the resistance, the increase can increase to $0.48.
XRP/USD 1-day chart | Source: TradingView
XRP has retreated from the support at $0.4412 after testing it over a longer time frame. There is a chance to witness a local correction even though sellers continue to be more powerful than buyers if the candle closes without long wicks. This situation is pertinent for the upcoming days.
XRP/USD 1-week chart | Source: TradingView
The situation is more bearish on the weekly chart as the bar will close to the critical level. If it does, the accumulated energy might be sufficient for a breakout and a burst to $0.4.
What’s next for the XRP price?
At every stage of the continuing market selloff, bulls attempted to kick-start a comeback in XRP, but bears were in no mood to give in.
Bulls attempted to halt the drop at the critical support level near $0.47, but bears kept up the selling pressure and pushed the price below it. XRP is currently trading at $0.454, below the crucial daily MA 50 support, as bears managed to drive down the price. The RSI is marginally rising as bulls seek yet another rebound. For further gains, XRP must trade above $0.454 to recoup it.
The possibility that XRP will trade within a range with resistance at $0.58 and support at $0.41 for a while continues. A break over $0.58 may be required to start a fresh rise. Instead, if the drops continue, XRP might fall to the MA 200 around $0.41, where investors are most likely to buy the dip.
In this case, XRP might trade above $0.41 in the higher zone, while a break below this important level might drive it into the lower range.
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