Ripple (XRP) price action is hurting investors and flashing red lights in financial markets. The biggest issue is that XRP price action is further selling off despite the Relative Strength Index (RSI) being firmly in the oversold zone. This means that sell-demand is so overpowering that bulls are getting out of the way and waiting for the drop to continue, to as far as the following substantial support level around $0.48, before they consider going long again.
Ripple price is penetrating below the monthly S1 support level at $0.58 and in the process looking to set a new six month low. As investors appear to be backing off, Ripple price action does not look likely to pick up anytime soon, although the RSI is trading firmly in oversold. The reason behind this is that XRP price action keeps selling off regardless of the oversold RSI, which is significant because it means that selling pressure is immense and could be linked to investors' divesting their positions.
XRP price will not see investors return to these levels anytime soon unless they reach a premium of $0.52 or even $0.48. Certainly, that last level would bring XRP price to a 7-month low which could trigger some investors to return to the scene for a lucrative buy opportunity. The RSI would be at the outer barrier of the oversold region by then, thus triggering some profit taking by bears, as they cover, reverting to the buy-side to close off their positions and book gains.
Risk-off sentiment has come a long way and pushed several assets towards interesting low levels, which could trigger some buy-the-dip volume. This could accelerate into a U-turn in XRP price action without even having to tic test a fundamental support level as a prerequisite. This could mean that Ripple price jumps back above $0.63, and if that uptick continues systematically throughout the week, $0.78 could be quickly hit by Friday. This would set the scene for this weekend and next week as investors finally look beyond the short-term turmoil for longer-term upward potential.
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1 Comments
Only noobs would be scared. The goal is to buy low, not sell low. You'd really be a dumbass to sell right now.
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