After euphoria came panic, XRP (XRPUSD) investors were flying high back in April this year after Ripple’s baby broke out and surpassed $1, marginally missing $2.
The hysteria was intensely high, and some insane calls were being made by some high profile retail investors on Twitter about how high XRP would go, with some going all out and making calls as high as $100 before year-end.
Sadly it wasn’t to be, and shortly after, a sharp Bitcoin sell-off triggered a south side crypto-wide meltdown, which is still in play; but for now, the sell-off has lost a little steam.
Despite all of the panic selling, XRP managed to hold its ground for the most part, but as selling pressure increased, investor mood dwindled. With the likes of Elon and co bashing Bitcoin, there was no hope for a meaningful bounce, and XRP eventually gave way and cracked below $1.
So how low can XRP go?
Your guess is as good as mine; fundamentally, the SEC case against Ripple has weighed heavily on XRP, and with the possibility of the lawsuit not ending until January 2022, investor mood may well dampen further.
Technically the crypto space is looking pretty bearish for the most part, and I dare say we are not far off from entering a bear market.
Let’s look at some noteworthy XRP levels using technical analysis to see where XRP could head next.
On the daily chart, the price has retraced back to the 61.8 fib level ($0.84 region) from the April highs and has held this level since late May, which is a good sign. The 200EMA has also been acting as support since the beginning of January, and the price has remained above; however, looking at Bitcoin, the 200EMA is above the price, and the EMA is acting as resistance, and if the Bitcoin price does not cross and stay above $41k any time soon XRP could drop below its 200EMA which could signal another leg lower to $0.60. XRP is hanging by a thread.
To the upside, $2.20 remains the first clear target that would signal a continuation north for XRP. The first hurdle right now remains $1.10 before another look at $1.40.
I don’t see XRP going lower than $0.60/$0.50 and the next few weeks will be vital. Hopefully, the odds are in XRP’s favour.
Pick your levels and watch price action to determine where next.