With XRP falling almost 8% in three days, the buyers struggle to maintain trend dominance. Will XRP fall under $0.50 this week?
As the broader market crashes overnight, XRP takes a quick bearish reversal as the bullish momentum fades. With a boom in supply pressure, the critical support levels at and above $0.50 are at risk.
Will the declining trend in XRP result in a massive correction this week?
Failed Bullish Pattern For XRP
Failing to sustain above the $0.60 psychological mark, the XRP price takes a bearish reversal with an evening star pattern. The bear cycle coincides with the broader market crash witnessed yesterday, which resulted in an intense pullback.
Over the past three days, the XRP market cap has decreased by 7.17%, resulting in three consecutive bearish candles. Currently, the XRP is trading at $0.5721 with a minor growth of 0.84%.
Furthermore, the bearish reversal nullifies the inverted head-and-shoulder pattern formed in the daily chart. Nevertheless, the 50-day EMA (yellow) supports XRP after the recent golden crossover with the 200-day EMA (blue).
The downfall also breaks under the 50% Fibonacci level and performs a retest. While the lower price rejection projects a potential comeback, the deteriorating market conditions warn of a further correction.
Underlying Strength in XRP
In the 4-hour chart, the XRP price trend shows a bearish reversal, crossing below the 61.80% Fibonacci level at $0.5753. Currently, the XRP price action projects a potential morning star formation. However, the massive bullish engulfing candle of 4.32% has a bearish influence on the price trend.
Further, despite the massive crash and the rise in the incoming supply, the whales continue scoping up more tokens. In the last 24 hours, the whales have bought almost 50 million XRP worth almost $30 million.
Crucial XRP Support Levels
With the 50% Fibonacci level at $0.55167 being a critical support level, the breakdown below this will be the actual bearish trendsetter.
Until then, the bullish dominance at the $0.55167 support level will keep the hopes of a bullish reversal alive. Furthermore, the XRP price trend maintains lateral movement in the 4-hour chart. The support levels under the $0.55167 levels are $0.52801 and $0.49873.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
