XRP Bear Cycle Predicts a Decrease to $0.49 This Week: All the Details
With XRP experiencing an almost 8% decline over the span of three days, those purchasing the cryptocurrency are struggling to maintain their dominance. The question on everyone’s mind is whether XRP will fall below the $0.50 mark by the end of this week.
As the broader market took a sudden crash overnight, XRP quickly followed suit with a bearish reversal as the previously strong bullish momentum dwindled. With an increase in supply pressure, the critical support levels at or above $0.50 are now at risk of being broken.
Will the downward trend in XRP result in a significant correction within the coming week?
Failed Bullish Pattern For XRP
Despite initially showing promising signs, XRP failed to sustain its position above the psychological $0.60 mark, ultimately succumbing to a bearish reversal indicated by an evening star pattern. This bear cycle aligns with the broader market crash that occurred yesterday, leading to a substantial pullback.
Over the past three days, the XRP market cap has decreased by 7.17%, resulting in three consecutive bearish candles. Currently, XRP is trading at $0.5721, experiencing a minor growth of 0.84%.
Additionally, the bearish reversal nullifies the previously formed inverted head-and-shoulder pattern seen on the daily chart. However, the 50-day exponential moving average (EMA) comes to the support of XRP after recently performing a golden crossover with the 200-day EMA.
Furthermore, the downfall also breaks below the 50% Fibonacci level and undergoes a retest. While the lower price rejection suggests a potential comeback, the worsening market conditions indicate the possibility of further correction.
Underlying Strength in XRP
Examining the 4-hour chart, the XRP price trend displays a bearish reversal, crossing below the 61.80% Fibonacci level at $0.5753. Currently, the XRP price action showcases the potential formation of a morning star pattern. However, the significant bullish engulfing candle of 4.32% has a negative impact on the price trend.
Moreover, despite the market crash and the increase in incoming supply, large investors continue to accumulate XRP. Within the past 24 hours, whales have purchased nearly 50 million XRP, valued at approximately $30 million.
Crucial XRP Support Levels
The critical support level for XRP lies at the 50% Fibonacci level of $0.55167. A breakdown below this threshold would signify the beginning of a true bearish trend. Until that happens, the bullish dominance at the $0.55167 support level will keep hopes alive for a potential bullish reversal. Furthermore, the 4-hour chart indicates sideways movement for the XRP price trend. Below the $0.55167 level, additional support levels can be found at $0.52801 and $0.49873.