XRP Recovery Finds Strong Resistance

The Ripple price has struggled even as other digital currencies have staged a major recovery following the crash on Wednesday. The XRP is trading at $1.1418, which is 38% above the lowest level on Wednesday this week. Still, it is about 10% below the highest level yesterday. It is also 41% below the highest level this year. 

What happened: Like all digital currencies, the XRP price was not spared during the recent crypto sell-off. The currency actually performed worse than its bigger peers like Ethereum and Bitcoin. This is partly because XRP does not have a significant number of institutional investors because of the ongoing SEC case. 

Instead, Ripple tends to be owned by small retail traders for speculative reasons. As such, when there is a small imbalance in the market, XRP tends to be more volatile than other currencies. So, what next for Ripple prices?

Ripple price prediction

The four-hour chart shows that the XRP price has been highly volatile in the past few days. This is evidenced by the fact that the Bollinger Bands have been extremely wide lately. Further, the Average True Range (ATR) has kept going up in the past few days. The chart also shows that the price is hovering slightly below the 50% Fibonacci retracement level. 

Therefore, in my view, while it is hard to tell, the outlook for Ripple is a bit bearish. I suspect that the price will retreat and retest the 61.8% retracement at $1.00. However, a move above yesterday’s high of $1.2611 will invalidate the bearish thesis.

Don’t miss a beat! Follow us on Telegram and Twitter.

XRP price chart

Follow Crispus on Twitter.