Ripple bears try to attack $1

  • Ripple price action saw a bullish breakout after the consolidation on October 9. 
  • XRP price formed a bull trap with a false break above the green ascending trend line, trapping bulls. 
  • Bulls stepped in eagerly in XRP price action at $1.05 again, only to get trapped once more.

Ripple (XRP) price action is on net displaying a nice picture for the bulls at the moment. Bulls in XRP price got trapped twice in a bullish outbreak that started at the $1.05 entry point and twice saw rejection around the green ascending trend line. With a second failed breakout, bulls are not interested at $1.05 anymore and are giving bears some leeway to drop toward $1.

XRP price action offers room for bears, but bulls will make it in the end

XRP price action saw bulls licking their wounds after being hit twice by the same bull trap that got laid out by bears. Bulls entered at $1.05, which holds some historical importance and could ramp up price action in XRP quite quickly toward the longer-term green ascending trend line. Bulls saw a break above each time, however, get rejected and reversed by shorters who pushed them out of their positions. 

XRP price now has more room to go to the downside as bulls will not start another attempt at $1.05. This gives the bears in Ripple price action some room, but not that much . Price action in XRP looks limited to the downside with a blue descending trend line that already gave some support on October 9, and around $1 bulls can count on not only the significant psychological figure but also the 200-day Simple Moving Average (SMA) that has proven to be a supporting floor throughout October.

 

XRP/USD daily chart

Expect XRP price action to fall in favor of the bulls once Ripple price reaches $1. Bulls have three easy reasons to pick up some XRP coins, and the price will pop back up towards $1.05 and $1.09. If XRP could enjoy some additional tailwinds, expect another leg higher with a retest and possibly break higher above the green ascending trend line. 

Should global markets stay heavy and on the back foot, expect bears to break $1 and look to test $0.84 to the downside, which was the low of September. Bears could try and test $0.78, but at that level, bulls will want to defend their entry points from August and XRP price action looks interesting at those discounts.

 

 


Be the first to comment

Leave a Reply

Your email address will not be published.


*