XRP fell to the $2.7 support before staging an impressive recovery. Will buyers return here and push it beyond $3?
Ripple (XRP) Price Predictions: Analysis
Key Support levels: $2.7, $2.5
Key Resistance levels: $3, $3.6, $4
1. XRP Makes a Lower Low
XRP ended August in a downtrend that took the price to the key support at $2.7, which became a multi-week low. With a lower low confirmed, the current downtrend is likely to continue. However, buyers still have a chance to stop the price at this crucial support since they showed interest when this level was tested on Tuesday.
2. Momentum Remains Bearish
With volume falling, only a strong return from buyers can reverse the existing bearish momentum. In the past few weeks, sellers have dominated on volume and price, which has created a large descending triangle with a base at $2.7. By mid-September, XRP will likely decide where it will go next. If lower, there is strong support at $2.5.
3. MACD Lower Highs
On the weekly timeframe, the MACD shows a clear bearish trend with lower highs and falling momentum. It would be quite impressive to see XRP reverse this selling pressure, considering the MACD moving averages have been on the verge of a second bearish cross since February.
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