XRP Technical Analysis: Is There a Risk of Market Collapse to $0.55?

Peter  |  Oct 13, 2021

Over the past few months, volatility in the XRP market has significantly declined. The new growth wave from July 2021 began at low volumes. Sellers are not trying to take control of the situation, although the strength of buyers in this price range is highly questionable. The main trend curve is under the control of buyers and now the price is testing an important price range of $0.95-$1.05. In May, buyers could not keep this range, which provoked a deep correction of the XRP market.

XRP

Therefore, now is quite a good moment, which should give an understanding of whether the XRP market participants will see the test of $0.55. The previous two trading weeks were moving rather sluggishly in the direction of growth. The drastic change in the Bitcoin impact has reduced interest in the XRP market. At the moment, the price of XRP reacts poorly to the BTC growth. The main question is whether the XRP market will react just as badly if the BTC falls to $50,000?

Technical Analysis of XRP on the Daily Timeframe

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For 6 days on the XRP market, the price moved in a narrow consolidation in the range of $1.03-$1.08. The exit from this consolidation upwards took place without increased volumes and aggressive growth. If sellers now test the local consolidation of $1.03-$1.08 just as sluggishly and without volumes, the chance for a sharp price reversal upwards and a powerful growth wave with the first target at $1.45 will increase as much as possible. Otherwise, the local buyers' initiative, which lasted from 22 September, will be completed. And the XRP market will once again be depressed.

The XRPBTC Price Almost Covered the Impulse from 9 August

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Given the fact that the direction of the XRP price movement primarily depends on the XRPBTC pair, we want to pay more attention to it. As we can see in the weekly chart, sellers almost completely managed to completely absorb the impulse of buyers from 9 August. The liquidity zone of 0.000016-0.000017 is the last chance for buyers at the beginning of the market reversal. The loss of this range will indicate the unwillingness of buyers to support the market and a high probability of the local low update. In this case, the XRP market will become unattractive for investment.

In fact, the XRPBTC market has been undergoing consolidation since September 2019. Therefore, it will be possible to confidently declare the beginning of the global growth wave after buyers fix above the mark 0.00004. Otherwise, we need to trade XRPBTC according to the rules of consolidation and wait for the price test of the limits of this consolidation.

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