 ▲ Ripple (XRP) |
Ripple (XRP) selling forces had difficulty pushing the price down below the main support level of $0.47. At the same time, the period for which trading is held at the lower boundary of the triangle pattern has become longer.
However, CryptoPotato, a cryptocurrency media outlet, reported that a bearish breakout is likely to trigger a large-scale liquidation of long positions.
The media presented a daily chart from TradingView and explained that Ripple selling forces attempted to further decline below the $0.47 support line, which has helped maintain the price since mid-April. The $0.47 support line included static and dynamic support near the lower boundary of the triangle pattern.
Considering the bearish sentiment that exists across the cryptocurrency market, a break in the $0.47 support line could trigger a sharp decline in the price and lead to the liquidation of large amounts of long positions in the perpetual market.
However, if market activity levels remain historically low, price consolidation may proceed with minimal price volatility.
Even in the 4-hour bar, the risk that the price will continue to plummet if the $0.47 support line collapses was detected.
After the price consolidation phase and the formation of the ascending triangle pattern, selling forces were observed to gain momentum and push the price down below the bottom boundary of the triangle pattern. This corresponds to a bear market in which selling forces push for further price declines below a certain point.
On the other hand, FX Street, a virtual asset news platform, noted that Ripple's price recovered after Monday's decline and analyzed that if it breaks the $0.499 resistance, it is likely to rise to $0.532, the high point recorded on June 5. It was also added that after reaching $0.532, an additional rally could be recorded up to $0.581, which is the Fibonacci 50% retracement line from the low of $0.419 to the high of $0.744.
