The price of XRP has seen a huge jump in the past few hours, causing the asset to gain over 15%. Price action can be predicted as a result of extreme bearish pressure over the past 10 days. While the buying volume has accumulated, which can eliminate most of the bearish effect, the possibility of a price drop still remains in place.
Hence, will Ripple (XRP) price maintain the current bullish momentum and secure the level above the critical resistance level? Or face rejection for low support by the end of the month?
Bullish Case for XRP Price
The top sixth asset has been trading passively in very narrow sectors for over a month after the May crash. Although it registered huge daily bearish candles, it failed to accumulate bullish pressure. However, after a range-bound consolidation between $0.34 and $0.3, XRP price broke above 15% and climbed higher to hit resistance at $0.37. There is no doubt that the price is currently facing a minor bearish action, but it could be resolved very soon.
As seen in the above chart, a massive downward trend has resulted in a steep decline in XRP price and it reached a lower support level above $0.3. After a brief consolidation, the price rose sharply, gaining more than 15% since early trading hours. Currently, the asset has corrected 3% after recording daily highs, which in turn indicates a resurgence soon.
To sustain a notable bullish trend, ripple price needs to secure its levels above the immediate resistance at $0.4. Otherwise the price could get rejected, pulling back below the resistance at $0.37 and in a worst-case scenario, it could even drop below $0.3.
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Bearish Case for XRP Price
A similar bearish case also emerges during the recovery phase, where – if the pattern repeats, the XRP price is expected to drop significantly. On the hourly chart, XRP price reflects past volatility, resulting in a significant drop of over 12%.
However, the decline comes after some rejection from the upper resistance. Currently, XRP price is also on the verge of rejection from the resistance which could drag the price towards $0.35. Here one can expect a rebound to the resistance as it happened earlier, which could eventually push hard towards the lower support.
Collectively, the XRP price despite hovering in a pivotal phase still reveals the potential for both a higher as well as a tough decline. Therefore, the end of the day could turn the tables for the asset which could determine the upcoming price action.
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