XRP price declined almost 60% from the April 14 high at a price of $1.96 to the March low at $0.82, culminating in one of the worst daily declines in XRP price history at 33.43%. Unlike other widely followed cryptocurrencies, the cross-border remittances token rests precariously close to the crash low level, leaving it vulnerable for a test or drop below.
XRP had delivered a challenging trading environment since the April high, but charts began to clarify the notable volatility into a wide symmetrical triangle support pattern. On May 18, Ripple tried to release from the triangle but was quickly rejected, creating a bull trap.
Like all digital tokens, the XRP was overwhelmed by the selling contagion that struck the crypto market, generating a 50% decline for Ripple price at the May 19 low. It was a significant technical development for Ripple XRP highlighted by the smashing of the symmetrical triangle’s lower trend line and the drop to the convergence of the price rising trend line from the December 2020 low at $.87 with the 61.8% Fibonacci retracement level of the advance also beginning in December 2020 at $0.85. The combination created an inflection point for evaluating future XRP weaknesses.
Due to the Ripple XRP investor profile being tilted to retail investors, there is added volatility during stress periods in the markets. That could arise if the cryptocurrency market follows today’s sell-off with something similar on the weekend.
If XRP does experience another daily loss like today of 16%, it will test the May 19 low, dropping through the trend line and the retracement point mentioned above. It would expose Ripple priice to a more substantive downturn that could threaten the November 2020 high at a price of $0.78 and the February high at $0.75.
A failure to stabilize at $0.75 shifts the focus to the 200-day simple moving average at price of $0.65, leading to a loss of 30% from the current price of $0.98.
The current technical framework for XRP is tilted bearish. Still, a daily close above $1.20 would initiate a transition in the XRP outlook to neutral that would need to be confirmed by a subsequent daily close above the technical hotspot level formed by the intersection of the 50-day SMA with the triangle’s lower trend line at $1.33.
Beyond those levels, XRP price would be free to revisit the triangle’s pattern upper trend line and the May 18 high at a price of $1.70. Friendly RSI readings could facilitate the XRP rebound as if it comes to fruition.
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