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Ripple in offloading zone for XRP bulls before downtrend accelerates losses

  • Ripple price action broke below an intermediary ascending trend line.
  • The 55-day SMA is providing a temporary floor and triggering a bounce.
  • With this window of opportunity, it is time for bulls to take their profits and run before XRP price is set to collapse by 18%.

Ripple (XRP) price action breaks below an intermediary ascending trend line that formed the backbone for the current uptrend after the invasion of Russia into Ukraine. Although the trend line provided support for a bounce yesterday, delivering a rejection of bears, the current losses in European stock markets has created leverage in safe havens and given bears the upper hand in risk assets like cryptocurrencies. Currently, the 55-day Simple Moving Average (SMA) at $0.73 is providing support to a pull-back, but with non-farm payrolls and a possible eventful weekend in Ukraine again, expect that support to be broken later today with XRP price action dropping as much as 18% to $0.62.

Time to take the parachute and head for the exit

Ripple price action is in risky territory for bulls as bears are taking over again going into the weekend. Since bulls were unfit to break above $0.78 and seize $0.80 to the upside, the price has been trading to the downside for the third day in a row today. As the bearish pressure mounts, a short-term supporting trend line has been broken to the downside and, as such, has halted the recovery rally since Russia entered Ukraine.

For now, XRP bulls see the 55-day SMA holding and creating a bounce on a test, but the pressure is mounting with lower highs intraday as safe havens are heavily bid, and the dollar strength is adding momentum for bears to push more to the downside. Expect a break of $0.73 to the downside to trigger a drop to $0.70. Once below there, there is not much in the way to prevent a drop towards $0.62, which was the low of February 24 and caught the falling knife action – to the tick on that day, but spells an 18% loss for XRP against where we are at the moment.

Markets would welcome a cease-fire to depressurize the current situation and give markets some relief. Assets classes often move in one direction as an elastic band and sooner or later need to partially unwind a stretched position, which would be no different for XRP price action. With such a move, expect to see a leg up towards $0.78 or $0.80 and with a test specifically at $0.8030, which is the double top from February 21 and March 01.

Source: fxstreet.com

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