XRP is flying a bullish flag over the cryptocurrency horizon from the end of last week, the weekend session, and on February 1. It was the perfect storm (hold in extended consolidation) for the Ripple community. In the previous weeks forecast a break to $0.5. However, Ripple proved it to be a conservative target, hitting the $0.75 level for the first time in 2022.
As of writing, XRP is dodging at $0.38 after a sudden sharp drop from its February 1 high of $0.75. The anticipated support at $0.7 and $0.4 failed to rise to the occasion, leaving the bears completely in control.
Meanwhile, the 50 Simple Moving Average has come in handy, capping the damage below $0.34. It is critical that this support holds, otherwise XRP could continue its free fall back to the levels it dominated in January (between $0.25 and $0.3).
Moving Average Convergence Divergence continues to strengthen the pessimistic view, especially now that the MACD line has crossed below the signal line. In other words, more losses will occur before buyers can control cross-border tokens.
An overarching look to the upside suggests that Ripple may soon renew its uptrend if the price closes the day above $0.4. Such a move would require more buy orders as investors rush back into the market in anticipation of another advance towards $1.
Spot rate: $0.38
Relative change: 0.01
Percentage change: 2.5%