Here’s how will XRP price fare after crashing nearly 40%
- XRP price is bouncing off the $0.328 support level after a 38% nosedive.
- If the remittance token manages to stay above this level, investors can expect a 12% recovery bounce.
- A daily candlestick close below $0.288 will invalidate this bullish outlook and trigger a further descent for Ripple.
XRP price shows a clear bearish outlook, and the same can be seen in the broader market after the FTX collapse. Regardless, the selling spree seems to have paused after a fresh start of the Asian trading session on November 10. Therefore, patient traders have an opportunity to scalp the markets as a recovery bounce begins to take shape.
XRP price shows short-term hope
XRP price has shed 38% since November 5 as it collapsed from a local top of $0.510 and created a local bottom at $0.316 four days later. This downswing, however, managed to produce a daily candlestick close above the Point of Control (POC) at $0.328, which is the highest traded volume level since March 28.
This development indicates that there are interested buyers who could step in and trigger a run-up. Moreover, the mean reversion play could also play out, pushing the XRP price up by 12% to the immediate resistance area, extending from $0.382 to $0.392.
While interested traders can take this small scalp, they should be aware that this trade could yield high returns, especially if XRP price can flip $0.392 into a support level. In such a case, Ripple could eye a retest of the $0.448 hurdle, bringing the total gain from 12% to 30%.
XRPUSDT 1-day chart
While the bullish scenario explained above makes logical sense, it would not work if the retail or panicking investors continue selling. Therefore, traders need to be careful with the XRP price, especially if it produces a daily candlestick close below $0.288. This development will invalidate the bullish thesis and trigger a further correction to $0.253.