The XRP price is losing momentum, which might lead to a sharp fall. The directional bias will be determined by how the remittance token reacts to the current support level.
The price of XRP has reached an inflection point.
The XRP price has been battling the $0.382 support level. Investors should keep in mind that this level was a big barrier in June and remains quite critical. Depending on how the remittance token reacts to this level, it might rocket off or fall sharply.
After temporarily lingering over 50, the Relative Strength Index (RSI) has fallen below it. This drop shows that the bulls are prevailing and the bears are losing momentum. However, the current XRP price decline might be a trick by market makers to gather sell-stop liquidity lying below $0.316.
As a result, investors should tread carefully and maintain a directional bias. A rapid surge over $0.382, followed by a liquidity run, will indicate manipulation. In such a circumstance, market players may anticipate that the remittance token would continue to rise.
The $0.446 and $0.506 levels are key profit hurdles for holders. This change would result in a 25% increase in the price of XRP.
If, on the other hand, the XRP price closes with a decisive daily candlestick close below $0.382 without any efforts to rebound, it will indicate that a bearish thesis is in play. In this instance, Ripple might experience a 25% drop to $0.288.