The price of XRP has dropped 7%, putting it below the bottom trend line in a bear flag pattern.
Around $0.740, Ripple found significant resistance at the confluence of the Anchored VWAP and the 200-day SMA.
The May 23 low, as well as price highs in February and late 2020, provide important support at $0.650.
Although the XRP price rose 45 percent from its low on June 22 to its high on June 29, it did not match the criteria for an impulsive rebound due to insufficient volume. The rebound’s corrective disposition is shown in today’s collapse from a bearish flag pattern. Ripple’s chances of breaking below $0.650 have increased, with the 78.6 percent Fibonacci retracement level of $0.555 and possibly the June 22 low of $0.512 as targets.
The price of XRP has dropped 70% and a spectacular 50% from its June 1 high, liquidating the May 23 low of $0.652, a level bolstered by weekly highs in late 2020 and February 2021. Ripple, on the other hand, achieved three key technical milestones that triggered a 45 percent rebound: a test of the 78.6 percent retracement of the December 2020-April 2021 advance at $0.555, an undercut of the 50-week SMA at $0.540, and the first oversold reading on the daily RSI since late December 2020.
The 45 percent rebound is notable, but it lacks the impulsiveness and velocity that mark major bottoms that would allow XRP to overcome the massive barrier around $0.740-$0.760. As a result, a bear flag formation triggered today, rapidly putting the $0.650 support level into play.
The measured advance of the Ripple bear flag formation is about 36%, implying that XRP price will overcome the 78.6 percent retracement level of $0.555 and the June 22 low of $0.512 before bottoming out around $0.437.
It’s worth noting that the XRP price has no significant support below the measured move objective, adding to the pressure on committed Ripple investors.
Chart of XRP/USD on a daily basis
At this juncture, the bearish Ripple narrative is compelling, and only a daily close above $0.760, the neckline of a multi-year inverse head-and-shoulders pattern, would change the picture.
The massive support and resistance levels, as well as the consequent 30-40 percent profit potential, may lead to XRP price moving into a trading range between $0.555 and $0.760 in the future, creating perfect trading circumstances for swing traders. Ripple, on the other hand, is dead money for long-term investors under $0.760./n
