Ripple Price Slips by 2.70% – Time to Buy XRP Coin?
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- XRP/USD reversed its course and declined sharply on Wednesday to its lowest in 7 days.
- The lack of real news and any fundamentals from the cryptocurrency also prompted investors to liquidate their trades before New Year.
- Ripple price fell below $0.89 and $0.85 support levels, which are both 20-day moving averages (EMAs).
Ripple price is in a bearish mode, having lost over 2.70% to trade at the $0.8399 level. The day before, the XRP/USD was closed at $0.85166 after placing a high of $0.92753 and a low of $0.84597. XRP/USD reversed its course and declined sharply on Wednesday to its lowest in 7 days. Due to low trading volume amid the Holiday season, markets were behaving strangely, and one of the latest examples of this behavior was XRP’s movement on Tuesday. Ripple’s token saw a surge last week due to positive developments surrounding its ecosystem; however, it seems like the token was experiencing a correction.
Altcoins are on a bearish mode so does XRP
Not only XRP, but ADA, LINK, and CRO were also down on Wednesday with a significant decline in prices mainly due to the liquidation of long positions. The data from Coinglass.com suggested that about $512 million worth of long crypto trades have been liquidated from 164,115 accounts in the last 24 hours, and the count was increasing. The lack of real news and any fundamentals from the cryptocurrency also prompted investors to liquidate their trades before New Year.
With growing interest in blockchain and crypto as a whole, this might be a good opportunity to buy Ripple and rise with the market.
Stronger greenback drives XRP/USD lower
The increased strength of the US dollar also added negative pressure on XRP/USD on Wednesday. The US Dollar Index, which measures the greenback value against the basket of six major currencies, rose to a 96.23 level amid the emerging risk-off market sentiment. The rising fears of the Omicron variant after a study suggested it being 70% more transmissible weighed on the risk appetite in the market.
The rapid spread of the Omicron variant caused the number of coronavirus cases to surge continuously throughout the world and increased safe-haven appeal, which ultimately pushed the greenback higher in the market and weighed on XRP/USD as both share a negative correlation.
Meanwhile, Ripple hopes to win the case against the Securities and Exchange Commission kept the losses in XRP/USD lower for the day. The filing of a new case accusing SEC of being biased towards Ripple by Empower Oversight, a non-profit organization, added optimism in the market and turned it bullish last week.
Daily Technical levels
Support Resistance
0.82257 0.90413
0.79394 0.95661
0.74101 0.98569
Pivot Point: 0.87505
Ripple technical outlook – Downtrend continues to dominate
It’s possible that short-term traders sold Ripple (XRP) because the bulls couldn’t get it to rise over its 50-day simple moving average ($0.94). So, the price fell below $0.89 and $0.85 support levels, which are both 20-day moving averages (EMAs).
The RSI has plunged into the negative territory, and the 20-day EMA has moved down, indicating a slight edge for bears. The XRP/USDT pair may fall to the strong support at $0.74 if the price stays below $0.85.
Alternatively, if the price rises above the moving averages, it indicates that lower levels are drawing a lot of bullish purchasing activity from investors. The price of the pair might then soar to one dollar. Inverse head and shoulders patterns have a $1.25 target if they break and close above this level.
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