Bull Trap Sets XRP Price on 8% Downside Risk

XRP Price Prediction: The ongoing recovery rally in XRP price has recently turned down from the $0.475 resistance level. However, the resulting pullback is a retest opportunity to breach resistance and check price sustainability above them. Can XRP price resume its bullish recovery from this level or will the correction phase continue longer?

key Points:

1. The lower price rejection candles at the $0.45 level indicate buyers are actively defending this support.
2. The flattish EMASs(20, 50, 100 and 200) reflect an overall sideways trade 
3. The intraday trading volume in the XRP is $1.34 Billion, indicating a 47% loss.

Source- Tradingview

On March 21st, the XRP coin price witnessed a massive inflow and surged its market value by 25%. The long-bullish candle breached two crucial resistance, i.e. resistance trendline of the falling channel pattern and the monthly resistance of $0.42.

This bullish breakout offered buyers a significant footing to bolster further price rallies. However, with rising FUD in the crypto market, the XRP price reverted from the $0.475 resistance and tumbled 12.15% to reach the current price of $0.417.

With today’s bearish candle, the XRP prices breached the $0.42 flipped support, questioning the credibility of the prior breakout. A daily candle closing below the aforementioned level will project the previous breakout as a bull trap or a failed breakout. 

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This breakdown will intensify the selling pressure and may tumble the XRP price by 8% to retest the breached trendline of $0.38.

Conversely,  if the XRP price sustains above the $0.42 mark by the day’s end, the buyers will get an additional confirmation for price sustainability at higher levels. With sustained buying, the XRP could rechallenge the $0.575

Technical Indicator

MACD: A significant gap between the MACD(blue) and signal(orange) line into bullish territory showed a sustained buying press in the XRP price.

Bollinger Band: the rising XRP price reached the upper band of the Bollinger band indicating the buying activity extended for a short period. Thus, the ongoing consolidation could assist buyers to recuperate the bullish momentum

XRP intraday price levels

• Spot price: $0.42
• Trend: Bearish
• Volatility: High
• Resistance level- $0.47 and $0.51
• Support level- $0.43 and $0.