Ripple (XRP) has been trading sideways for the last two days. The coin had managed to see decent upward momentum but it seems the altcoin is running out of steam. So, how will the price action play out in the near term? Here are some factors:
- Ripple has shown weakness as it attempts to cross above its 200-day EMA
- This suggests that the decisive bullish breakout we saw is about to pull back
- The coin could fall as low as $0.62 in the coming days
Data Source: Tradingview
Ripple (XRP) – The end of the uptrend
Many coins were likely to pull back after they surged over the last week. But for Ripple, the end of the line appears to have come much faster than expected. In the last two trading sessions, the coin has largely traded sideways. In fact, in the last 24 hours, XRP had managed gains of less than a single percentage.
Also, the coin has faced major resistance at its 200-day EMA of $0.85. After getting rejected several times last week, bulls may decide to lock in profit, something that could bring in massive selling pressure.
If XRP fails to smash past $0.85, the coin will likely drop to $0.62. This will represent a drop of nearly 25%. The RSI also remains neutral, with the Moving Average Convergence Divergence holding above the midline. All these indicators show a slowing bullish uptrend. As such, XRP has more downside risk than upside potential.
Should you buy Ripple (XRP) now?
Not really. The best entry point for a bullish trade would be above $0.85, which will be above the 200-day EMA. But if XRP fails to clear that, we will see a sharp fall.
As such, wait for a week or so and only buy if the coin falls back to $0.62. This also applies to long-term investors as well.