XRP Eyes Critical $0.7 Support Following 14% Weekly Drop


Key Support levels: $0.70

Key Resistance level: $0.85

After a sharp decline, XRP appears to have formed an ABC corrective wave structure with price finding good support at the $0.70 level. If the correction stops here, then XRP will likely consolidate above the key support until a breakout is attempted above the resistance at $0.85.

XRPUSDT_2022-01-10_11-59-21
Chart by TradingView

Technical Indicators

Trading Volume: The volume continued to decrease as the price fell. This shows sellers are no longer interested to offload their positions at this price. This allowed XRP to find support and stop the downtrend.

RSI: While the daily RSI continued to decrease, the momentum has faded, and there is a lack of conviction to go lower. Unless XRP price falls under the key support, it is unlikely for the RSI to move much lower.

MACD: The daily MACD is bearish, but the histogram is already making higher lows. This indicates that the selloff might be over, and a consolidation period can take place.

XRPUSDT_2022-01-10_11-59-49
Chart by TradingView

Bias

The current XRP bias is neutral. The price seems to have found good support above $0.70, and it seems less likely for XRP to fall lower at this time.

Short-Term Prediction for XRP Price

The most probable scenario for XRP is to move sideways and consolidate between the key support ($0.70) and resistance ($0.85). This could take place until the end of January based on the current market structure.

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Cryptocurrency charts by TradingView.



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