Key assistance levels: $ 0.75, $ 0.70
Key Resistance Level: $ 0.89
Since XRP was rejected by the resistance of $ 1, the price has seen a continuous decline which was exacerbated by the market crash on Saturday. Support at $ 0.89 turned into resistance during the crash, and the next key support level is found at $ 0.75.
Despite this painful downtrend, XRP’s price action seems to indicate that the bulk of this correction may approach the end. Particularly because the downwards momentum is losing strength, and each subsequent red daily candle after the crash was smaller. Today’s candle, even if red, could be interpreted as a bullish hammer, which is a reversal signal.
Technical indicators
Trade volume: The volume declined after the crash on Saturday. This is a bullish sign for a possible reversal.
RSI: The daily RSI is in oversold territory at 25 points. The last time the daily RSI was this low was in March 2020. For this reason, this downtrend may come to an end soon.
MACD: MACD continues to be bearish, and histogram and moving averages have hit a lower low. It is important to be patient as XRP needs more time to initiate a reversal, and likely a bullish divergence on the RSI and MACD histogram will be needed before this materializes.
Bias
The current XRP bias is bearish. The indicators remain negative, but there are some hints that this crash may come to an end.
Short-term prediction of XRP price
The Bulls suffered loss after loss last week and couldn’t stop XRP from falling below several support levels. However, the current support at $ 0.75 and $ 0.70 may stop this downtrend and give the bulls hope for a reversal.
