After a massive market selloff on Tuesday, the XRP price dropped to just $1.25. This erased all gains since February 1.
Takeaways from the conference:
- The XRP price fell to 1.25 dollars after the market sold off. XRP was testing its long-term trend line as well as the area of support for 50 month exponential moving mean.
- While traders are looking to $1.50 and below as the next support level, optimists expect a higher price. “bear trap” forming.
- June is historically a bad month for XRP. Traders are increasing their bets that the price will drop below $1.20.
Teaser XRP Price Action “bear trap”
TradingView data shows that the XRP opened at $0.33 in June, which is just under the 50-month moving exponential average (EMA).
It is important to note that XRP also trades. “directly on/slightly below the White MACRO Trend Line,” Egrag Analyst Crypto said In a Sunday post, X referred the the upward trending price line for the past several years.
Related: Three key XRP metrics suggest ‘explosive price expansion’ is next
When XRP has opened the month lower than the 50 EMA in macro-drawdowns before, this is what happened. “structure often begins to form a bottoming zone,” The chart shows this. At the moment, the price of the stock is below the macrotrendline. Price could fall below the macro trend line before recovering as in 2020,2023, and 2024.
“The market is leaning heavily bearish,” Egrag Crypto also added:
“If XRP reclaims the 50 EMA and the Macro trend line, this setup could become one of the biggest bear traps of the cycle.”
XRP/USD one-month chart. Source: X/Egrag cryptocurrency
ChartNerd analyst believes the target price for a local new low is between $0.70 and $0.90.
“Many of you admire this beautiful $XRP fractal, which leaves the door open to a $0.90/$0.70 XRP before any major reversal,” The trader summarized A chart indicating a potential bottoming area for XRP is shown alongside.
Source: X/ChartNerd.com. XRP/USD Monthly chart. Source: X/ChartNerd
Kamile Uray, a fellow analyst said Bulls had to hold $1.26-$1.30 as an important zone of support to avoid a further correction towards $0.94-$1.11.
Daily chart of XRP/USD. Source: X/KamileUray
Cointelegraph reportedIf XRP drops to $1.11 on February 6th, it could then retest that low. psychological support at $1 After the support of $1.27 was broken.
It is a common fact that June can be a very bad month for the XRP
XRP is not a bull’s friend. It tends to be weak in June. Since 2014, the price has closed in the red for eight of the past 12 months, with average returns of about −5%.
According to Cryptorank, the June losses are even greater in years when XRP ended May with a negative balance.
XRP returns on a monthly basis Source: Cryptorank
Chart above shows losses in bear cycles are higher, as shown by 2018’s loss of -23.8 % and 2022’s -21.5%.
The -34.4 % drop in June 2020 is a one-off due to the US Securities and Exchange Commission suing Ripple. It has been affecting XRP prices for many years.
XRP prices could be on a downward trajectory in June. A possible rebound in July is also likely.
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Source: cointelegraph.com
