Ripple Price Prediction: XRP opens below 20-day SMA as bears remain in control
Daily Ripple XRP Technical Analysis
- Over the last three days, Ripple has dropped from $0.62 to $0.52.
- XRP is currently interacting with the lower bound of the bullish pennant structure.
Ripple bears have remained in control of the market for the third straight day. This Wednesday’s XRP candlestick has opened below the 20-day SMA. Over the last three days, the sellers have managed to drop the price from $0.62 to $0.52. Let’s see both the long-term and short-term price implications with technical analysis.
XRP bears remain relentless
After facing resistance at the $0.695 resistance wall on 24th November, the price has been on a complete downtrend. This Tuesday, the bears managed to take the price below the 20-day SMA, which was further consolidated today.
Image: XRP/USD daily chart
If the bears do not relent, then the next viable level of support lies all the way down at the 50-day SMA ($0.3843). Such a fall could have devastating implications on the future price action. However, there could be some respite in the form of the $0.47 support wall, as seen in the weekly price chart.
Image: XRP/USD weekly chart
The weekly chart makes for some pretty good reading. From September 2020 to November 2020, XRP has been sitting on the middle Bollinger Band, after which it exploded up in mid-November. However, this explosive movement caused the price to climb above the upper Bollinger Band and the relative strength index (RSI) above 70. Both of these metrics show that the asset was extremely overpriced. The latest correction has brought the price back inside the Band, and the $0.47 support should hold firm.
Is this a temporary correction before a massive eruption?
If we zoom out of the daily chart, then we can also see that XRP/USD has formed a bullish pennant. While the price has fallen below the 20-day SMA, it could bounce back up from the pennant structure's lower bound ($0.50). If that does happen and XRP does manage to break above the pennant, it could reach the price target of $1.
Image: XRP/USD daily chart
As of now, XRP’s price movement is completely dependent on how XRP interacts with the lower bound of the pennant.
XRP key price levels to watch
As we just mentioned, the key level to watch for now is the lower bound of the pennant ($0.50). If the price breaks below the structure, the $0.47 support wall is absolutely crucial. A further break below this level will take the cross-border remittance token down to the 50-day SMA ($0.3843).
However, if XRP breaks above the bullish pennant structure, it will have enough momentum to reach the $1 target.