- The price of XRP is at a point where a breakdown of critical levels could result in a steep correction.
- XRP could flip bullish if the same levels are able to absorb the incoming sell pressure.
- If bulls step in at the current price levels, we could see a bullish scenario play out for XRP.
The price of XRP is at a point where a breakdown of critical levels could result in a steep correction. On the other hand, the situation for XRP could flip bullish if the same levels are able to absorb the incoming sell pressure. If this happens, then we may see a bullish rally triggered.
Following the May 12 swing low at $0.336, the price of XRP bounced 38% towards a swing high at around $0.466. Since then, the remittance token has created a range that extends from $0.395 and $0.450 and has stayed within this range for the most part.
May 26 saw XRP’s price sweep the lower limit at $0.395 to create a somewhat equal low at $0.375 before attempting a rally. At this point, XRP had climbed 15% past the midpoint at $0.422, but the move failed to hold up. This sell-off pushed the token back to the range low of around $0.385 where it is currently trading.
Assuming bulls step in to save XRP, there may now be a chance for the price of XRP to sweep the equal lows formed at $0.375 and take a U-turn. If bulls step in, the resulting rally will likely move towards the range high at $0.450.
This move would constitute a 20% gain. However, if buyers do not book profit, then the total gain for the rally could reach 30% and look to challenge the $0.486 hurdle.
Price of XRP below range low (Source:TradingView)
Even though things are looking relatively bullish for XRP, the narrative is based on the premise that bulls seize an opportunity around the $0.375 barrier.