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Ripple Drops 38% From September Highs; Time To Buy The Dip?

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  • Ripple extends the bearish leg to $0.86 but recovers gradually to $0.94.
  • A confirmed breakout above $0.95 would affirm the bulls’ grip on the price for gains eyeing levels above $1.

Ripple explored the levels below $1 following the bearish wave that started hitting the market on Sunday. The cross-border token had lifted to September highs of $1.4 before a correction trimmed losses. Initially, support between $1 and $1.1 mitigated the impact of the bearish wave.

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Nonetheless, the last two days have been highly volatile, with Bitcoin dropping from above $48,000 to nearly $42,000. Meanwhile, XRP plunged to test support at $0.9, but the candlewick hit lowers $0.86 for the first time since August.

Ripple Could Be Preparing An Upswing To $1

The support at $0.9 currently ensures that Ripple does not drop to the following critical demand zone, the red band slightly below $0.8. At the same time, it ensures that buyers have the upper hand as they focus on the rebound to $1.

Ripple is trading at $0.94 at the time of writing amid a bullish building momentum. The Moving Average Convergence Divergence (MACD) emphasizes the bearish grip at the moment. Still, there is a possibility of a buy signal coming into the picture, especially if Ripple gains momentum above $0.95.

It is essential to watch out for the 12-day Exponential Moving Average (SMA) crossing above the 26-day EMA. Moreover, a consistent MACD movement toward the mean line would add credence to the optimistic outlook.

XRP/USD Four-Hour Chart

XRP/USD price chart
XRP/USD price chart by Tradingview

As Ripple recovers, some delay should be anticipated at $1, where some holders will try to break even, dampening the selling pressure. However, the most substantial supply zone is the red band on the four-hour chart. A break above this area could liberate XRP and pave the way for another leg up to $1.2 and later to $1.4.

On the downside, if losses extend below $0.9, Ripple will quickly drop to the green band, whereby bulls will put up a fierce fight, perhaps sending the cross-border token significantly upward.

Ripple Intraday Levels

Spot rate: $0.94

Trend: Bullish

Volatility: Expanding

Support: $0.9 and $0.8

Resistance: $1 and $1.1

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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