XRP price currently auctions at $0.44 as Ripple has lost more than 5% of market value in a day's time. The 8-day EMA and 21-day SMA remain above the digital remittance token and have produced the anticipated bearish cross on Monday, October 17.

Now that the cross has occurred, liquidity levels near $0.40 and potentially $0.37 are in jeopardy of getting breached. The Volume Profile Indicator confounds the bearish notion as a significant influx of transactions has occurred during the recent 5% decline.

invalidation of the bearish downtrend is a breach above $0.50. If the bulls manage to reconquer the $0.50 zone, an additional rally targeting September highs at $0.56 stands a fair chance of occurring. Such a move would result in a 24% increase from the current XRP price.

XRP price thus sees traders not taking any chances and booking the small gains they made on Monday. This triggered a strong sell-off on Tuesday evening after Netflix earnings, and saw a continuation this morning that is accelerating with the wider sell-off in equities. Expect to see $0.44 being tested and possibly a slide below that 200-day Simple Moving Average (SMA). This would evaporate any hopes of breaking out of this bear market and puts $0.42 back on the map for the end of this week.

A more bullish take could see a turnaround sparked with further positive earnings on the docket. With still some big tech names releasing earnings in the coming weeks, FAANG and Nasdaq could jump higher and pull cryptocurrencies into alignment. Expect to see a small turnaround back to $0.48 and possibly a ventured gamble to rally up to $0.50 if traders see some continuous buying in cryptocurrencies.

EMA200 Acting as a Support to Ripple Correction

Oct 21 2022

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