XRP on Shaky Ground After Dropping 6 Points in Latest Correction

Key Takeaways

  • XRP went down to retest the hypothenuse of an ascending triangle where it has been contained since mid-September.
  • If this critical support barrier fails to hold, the cross-border remittances token may drop to $0.22.
  • Nonetheless, whales have been loading up as prices decline, suggesting that all is not yet lost

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XRP dropped 6% over the past few hours that saw the remittance token retest a critical support level. Now, bulls must step in to avoid further losses.

Sitting at a Make-or-Break Point

Following September’s market crash, XRP entered a consolidation phase.

The stagnant price action seen in the last two months led to an ascending triangle within the daily chart. A horizontal resistance wall developed along with the swing-highs, while a rising trendline was created along with the swing-lows.

The cross-border remittances token attempted to break out of this technical pattern on Oct. 22.

However, the overhead resistance was able to hold, rejecting the bullish momentum. The rejection resulted in a nearly 8% correction that sent this cryptocurrency to retest the triangle’s hypotenuse.

Phemex - 10 off

Now, XRP sits at a make-or-break point. A further spike in selling pressure around the current levels could be significant enough to break the underlying support at $0.243. Moving past this hurdle would likely see prices drop over 15% towards the next crucial area of interest at $0.217.

This target is determined by measuring the distance between the widest point of the triangle and adding it to the breakout point.

XRP US dollar price chart
XRP/USD on TradingView

It is worth noting that a sudden increase in buy orders could jeopardize the bearish outlook. If XRP can advance beyond the $0.26 mark, FOMO may kick in.

Once this resistance level has been cleared, the odds for a 15.5% upswing to $0.30 will drastically increase.

XRP Whales Continue Loading up

Despite the ambiguous outlook that XRP presents, large investors seem to have taken advantage of the downward price…

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