XRP is down 9% on the weekly chart! Can the support at $1 stop the downtrend?
Ripple (XRP) Price Predictions: Analysis
Key support levels: $1
Key resistance levels: $1.4, $1.6, $2
Downtrend Resumes
After three months of sideways action that formed a large pennant, XRP finally broke lower and resumed its downtrend. The recent decline has put the price on a direct path toward the important $1 support level.
Broad market weakness contributed to the move, as buyers have largely disappeared from the order books and most crypto assets are trading in the red this week. XRP was unable to withstand the selling pressure, and the technical picture now favors further downside and the potential for lower lows if selling persists.
Key Support Approaching
The most significant support level to watch is $1. That level has not been tested so far this year, and if the current downtrend continues at its present pace, a retest appears likely in the near term.
A move toward $1 could make XRP more attractive to buyers, as that price is also an important psychological level that often sparks battles between bulls and bears. If buyers step in at or near $1, the market could see a relief rally; if that support fails, further losses would become more probable.
Bearish Cross on 3-Day MACD
Technical indicators have turned more bearish recently. After a bearish cross was observed on the 2-day MACD, the 3-day MACD has now produced a bearish cross as well. This reinforces the downtrend and gives sellers greater confidence to seek new lows.
Selling pressure has been prominent since mid-May, following a final bullish attempt to break higher that ultimately became a bullish trap. Since that failed breakout, the price trend has been predominantly downward with limited buying interest to halt the decline.