Will it be a Deja Vu? Are we seeing a repetitive event with XRP? These are a few questions investors have right in their heads at the moment. XRP has again mimicked upper retracement. What does that mean? It means like previously Ripple can lose 65% of its value again.
What Happened?
On June 24th, XRP rose to $0.36 from $0.28. This marks a 30% increase which is unprecedented citing months of cooling period. That said, expert investors speculate that Ripple could brace for further upside. If that happens, we can see XRP trading at $0.41 shortly.
XRP is forming the cup and handle pattern on the charts. Such formations signify a quicker upside followed by a reversal. However, EMA’s 50 Day target co-incidentally matches with the profit-taking point.
Citing previous XRP’s 200-Day EMA, it has seen sudden outbursts followed by sharp corrections. It can get repeated this time as well which is highly likely.
What Could Be the Upcoming Move Going Forward?
XRP at the moment has been in an overbought zone. The RSI is at 70 which shows that market corrections could be underway.
While looking at the triangle formation, there’s a bearish formation at the giant triangle’s part. However, it is for the long-term scenario. When such formations occur, a continuous dip doesn’t look invalidated. So, if macro factors prevail like Fed’s tapering and rising petrol bills, we could likely embrace a further downfall. Such an event will pull XRP’s price by 50% and validate the erstwhile claims that whenever XRP has rallied and hasn’t broken the upper resistance levels, it has lost 50% to 60% of its value in the form of correction.
