The cryptocurrency market suffered a lot this past week. When China announced its strict cryptocurrency ban, the entire crypto market became in the red. Traders started panic selling, driving prices even lower than expected. For XRP’s case, things were very similar. Prices sank below the 1$ psychological price. Will this phenomenon continue? Will prices continue to sink further? In this XRP Price Prediction article, we’ll look into the important levels to consider when approaching your XRP trade.
What Happened to XRP so far?
The cryptocurrency market was going on a steady uptrend and finally started to rise again after the previous crash. This was met with harsh profit-taking along the way. Specifically for XRP, prices reached the important psychological price of 1$. With a lack of strong fundamentals, price became stagnant for a short while.
In figure 1, we can clearly see how several events affected the uptrend. Some might think that the China Ban contributed the most to the decline in XRP, but the fact is, XRP prices were waiting for bad fundamentals to dip lower. This is part of a price breather after an extended uptrend since mid-August.
If we zoom our and assess the impact of the current price decrease on XRP prices, we’ll notice a normal retracement. Plotting the Fibonacci Retracement tool from the support of USD 0.53 price shows an exact retracement of 61.8% (figure 2). From now, it is up to the buyers to push prices upwards.
XRP Price Prediction – Should you Buy XRP today?
Currently, prices are at a very important level. Since April of 2021, XRP prices showed consolidation around the current USD 0.95 (with a buffer of 7 cents). Those consolidations resulted most of the times (80% specifically) in an upward momentum soon after. This should definitely be paired with:
- Positive sentiment in the overall Cryptocurrency market
- Good fundamentals in Ripple company specifically
That’s why the following trade setup can be opened, based on the above assumptions:
- Buy Level: USD 0.90
- Stop-Loss: USD 0.86
- Take-Profit: USD 1.04
- Risk/Reward: 2.96
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