At the time of writing, the Ripple (XRP) price action is looking quite bearish.
Until early November, XRP had been holding between its 200-day and 50-day EMAs. However, after the massive 35% Bitcoin drop earlier in the month, XRP came tumbling down along with most of the altcoin market.
The banking cryptocurrency was trading at close to $0.32 at the beginning of the month, but it has since crashed close to 40% and is now around $0.22.
Here, I’ll take a closer look at Ripple, both in terms of US dollars and satoshis, to better understand what’s going on with XRP.
Will it continue its move to the downside? Or will XRP fully recover to new yearly highs?
Let’s take a look at the chart for XRP.
As explained above, XRP is on a clear downtrend.
The altcoin was recovering well over October, with price rising from around $0.22 to over $0.31.
In essence, Ripple grew almost 40% over one month.
However, after BTC came crashing down in early November, XRP soon followed.
Since the end of the first week of November, Ripple has been putting in lower lows, and the trend doesn’t seem to stop there.
All EMAs are also on a downtrend and volume has spiked to yearly highs thanks to huge sell-off pressure.
My opinion? We could still go lower, most likely to the $0.20 level.
There isn’t much support below this level, meaning if the altcoin does fall lower, I’m not sure where it will stop.
I would advise care until XRP recovers to at least over $0.24, where the volume profile shows there is strong resistance which could turn into support.
So how has XRP fared vs BTC?
Looking at the chart above, we can clearly see XRP has already touched yearly lows vs BTC.
Earlier in the year, between August and late September, XRP was trading close to 2,500 sats. At the moment, it has recovered over 20% and is trading at around 3,068 sats.
Even though the altcoin is close to its 20-day EMA, price hasn’t been shaken by the latest downtrend.
While in USD terms XRP has been tumbling, in satoshis, it seems Ripple has indeed found a bottom.
If price action continues to behave in this way, slowly making more higher lows, I expect XRP to fare well in USD terms.
The reason is that altcoins seem to make the initial push vs BTC which then translates to USD price. This simply means if price is able to sustain itself around $0.22, I suspect there will be another move upwards.
What the chart above shows is a serious six-month consolidation.
However, during these uncertain periods, traders and investors are usually advised to enter the market with care, as volatility may bring price down even further.
Safe trades!
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.