Ripple Price Down by 1.36% – Time to Buy XRP Coin?
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- XRP/USD fell below $0.83507 as the crypto market struggled to gain positive traction on the day.
- Broad-based US dollar bullish bias played a significant part in weakening the XRP/USD currency.
- A surge in demand above these levels could lead Ripple prices towards 0.8640 or 0.8815 levels.
During Monday’s early European session, the XRP/USD coin failed to stop its previous session’s bearish rally. Ripple fell below $0.83507 as the crypto market struggled to gain positive traction on the day. The XRP/USD pair regained ground earlier in the day after hitting a daily low of $0.82. At the time of writing, the ripple price was $0.83683.
With growing interest in blockchain and crypto as a whole, this might be a good opportunity to buy Ripple and rise with the market.
Since the December 3 flash crash, Bitcoin’s price has been stuck between two critical levels. First, this consolidation is laying the groundwork for a long-term volatility move, but for the time being, BTC is expected to retest the sideways move’s range high. Short-term gains will be seen in Ethereum and Ripple as they quickly follow the larger cryptos.
The crypto market has been flashing red since the start of the day, and the cause could be traced to recent falls in the world’s largest cryptocurrency, Bitcoin. Bitcoin’s price failed to rise beyond $48,500 and began a new downward trend. BTC moved into a negative zone after trading below the $48,000 and $46,500 levels.
Stronger US dollar continues to weigh on XRP/USD
On the other hand, the broad-based US dollar bullish bias, backed by various factors, played a significant part in weakening the XRP/USD currency. For instance, the dollar rose in Asia on Monday morning, but it had a quiet start to 2022 because of holidays in many key Asia-Pacific markets. The global spread of the omicron COVID-19 type also impacts sentiment, which is driving up demand for safe-haven assets. Moreover, even though the number of cases in the western Chinese city of Xi’an has decreased, statistics from Johns Hopkins University show that the global number of cases has surpassed 290 million as of January 3.
Daily Technical Levels
Support Resistance
0.80811 0.86436
0.77749 0.88999
0.75186 0.92061
Pivot Point: 0.83374
Ripple technical outlook – Downtrend continues to dominate
As Ripple struggles to find consumers in the market, the price of XRP could plummet much further. As a result, the trading volume of the cross-border remittance token has declined and may continue to decline. The XRP price is trapped within a symmetrical triangle pattern on the 4-hour chart, signaling that Ripple may continue to consolidate. However, the token could fall much deeper to find key support at $0.8056.
The coin is still hovering below the 9-day and 21-day moving averages. With a market capitalization of $40.89 billion, Ripple is now ranked eighth in the global cryptocurrency market. Its price is moving toward the resistance level of $0.90 on the daily chart, as an initial move over the 9-day and 21-day moving averages could push the price higher. Ripple (XRP) reached a daily high of $0.87 before reverting to where it is now trading.
Looking at it from the top, more bullish swings could occur if the Ripple price crosses above the moving averages, with $0.90 being the nearest resistance mark. However, the daily movement continues in the hands of the bulls as the technical indicator, Relative Strength Index (14), is seen moving around the 45-level, continuing the persistent comeback from the downside.
What’s next?
For now, the XRP/USD coin is likely to find immediate support at the 0.8430 level. A surge in demand above these levels could lead ripple prices towards 0.8640 or 0.8815 levels. A break of the 0.8430 support level, on the other hand, could expose the XRP/USD token to 0.8055 or 0.7603 levels. Consider trading choppy within a tight range of 0.8640 – 0.8420. Further trades can be taken upon the breakout of this particular trading range. Good luck!
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