- The volatile price has erased its recovery since last week’s soft patch.
- XRP price is below last week’s low and is poised to move to a new yearly low.
- With the pivots coming closer to each other for July, a breakout is due any time now.
Ripple (XRP) price looks to be headed for a set of consecutive weekly gains with some solid gains on the back of last week’s price action. However, the soft patch was quickly cut short and turned into a complete reversal, erasing all gains and displaying a bull trap against investors who went long XRP on a break above $0.3616. This week’s price action is below last week’s lows, the recovery is broken anyway and room for more downside is now open, possibly printing new lows for the year.
XRP price is set to drop another 15% in the next week
Volatile prices have shattered many investors’ dreams this week as global markets remind traders that the current tail risks could easily flare up and that this painful trade is not over but will set a straight record entering the next phase. As the weeks evolve, it becomes more and more clear what the game plan is going forward: the US will go into controlled recession, while Europe will let inflation run wild and heal all wounds with the passage of time, and meanwhile we’ll try to do something about it, but don’t get your hopes up. Time will tell who has the right strategy, but for now, large cash outflows from cryptocurrencies will continue.
On a purely technical basis the XRP price will shed some more value in the coming weeks. As the new month begins, pivot levels have been recalibrated in July, and from the looks of it, a breakout will happen soon. The monthly pivots have less space between them than the previous month, the price action is squeezing each other and indicating a slowdown in volatility, making S1 at $0.270 the best candidate, with the worst case XRP price dropping to $0.1730.
XRP/USD Weekly Chart
As mentioned in the above paragraph, the monthly pivot levels are very close to each other, indicating that a breakout is about to happen at any moment. It could be a breakout to the upside. As volume eases in the summer months, as the bears are absent, tanning on the beach and grilling their burgers, bulls can seize this momentum to push price action higher and print a 59% gain, lifting the price action to $0.4974. .