XRP Bulls Must Reach For Higher High Or Risk 80% Collapse

Share this story:

XRP has been on a tear over the last month, rising over 47% in June alone. Most of the gains arrived late in the month, with a massive, over 30% push from bulls in the last week.

However, Ripple bulls will still need to push the asset’s price even higher to invalidate a powerfully bearish signal that could send the altcoin falling another 80% or more.

Crypto Market’s Whipping Boy Makes Neck-Snapping Recovery

How quickly things turn around in the cryptocurrency industry. XRP went from the market’s worst performer for over two years in a row, to topping the industry last week in terms of one-week performance.

The altcoin known as Ripple made a big splash, besting all other assets in weekly ROI – even Bitcoin and Ethereum. It helped the asset re-flip Tether for the third-ranked spot in the top ten crypto assets by market cap.

Related Reading | Silver Fractal: Are Crypto Altcoins On the Cusp of an Explosive Surge?

July was the asset’s hottest month in recent years, rising as much as 47%. Last week alone, gains peaked at over 30% and reached above resistance at 30 cents on the dollar.

Bullish momentum is building in the asset, but until a new higher high is formed on high timeframes, Ripple remains in a downtrend.

Making matters worse for bulls, a massive bearish divergence has formed on the Relative Strength Index. And in a perfect storm of doom and gloom, a fractal matching the same divergence hints at a potential devastating Ripple drop.

XRPUSD Bearish Divergence Fractal | Source: TradingView

Bearish Divergence Leaves XRP Vulnerable To New Lows Unless Bulls Can Achieve a Higher High

According to the Relative Strength Index on the XRPUSD trading pair on daily timeframes, the altcoin is signaling a bearish divergence. Bearish divergences occur when price action moves opposite of a strength measuring indicator like the RSI.

The indicator has been pushing far higher than price action, suggesting that there’s strong bearish pressure absorbing the strength of buyers and preventing a retest of the previous high.

Bullish Take | Short-Term XRP Target At 40 Cents, What Ripple’s Long Road To Recovery Looks Like

Bulls will need to push harder for a higher high to invalidate the bearish signal. If they can’t, bears could regain control and force XRP back into another year of a downtrend.

The last time this bearish divergence fractal took place, XRP fell another 87% against USD to its Black Thursday low. Another 87% fall from here, would take XRP back down to just over 4 cents per token.

It also happens to coincide with an area of untested resistance flipped support. XRPUSD never came back down to retest this key level, and it may be a gap that needs to be filled before a new uptrend can begin.

Following a pitchfork channel in XRPUSD, would place the bottom of any extended return to downtrend through the end of 2022. At that point, a similar target would have been reached as the first major bearish divergence.


All provided materials and tools are for entertainment purposes only and should never be considered financial advice. Crypto News 19 will not take any responsibility for lost funds based on investments/trades made on information found here or any linking website/affiliate. This includes all social media posts and all other communications occurring under the name Crypto News 19. You should always seek professional advice before making any investment or trade.