According to an analysis by Cheeky Crypto on YouTube, XRP has been following the broader crypto market’s downward trend. Technical indicators signal a potential bearish breakdown, raising concerns for traders.
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XRP Technical Analysis
Cheeky Crypto’s review of XRP’s price action on the 1-hour chart focused on the anticipated movement within the 59.68-61.7 cent range. However, the wave structure was miscalculated, pointing to a more bearish outlook.
XRP tested several critical support levels, including the 50 EMA and 50 SMA. Despite finding temporary support, XRP failed to sustain these levels and eventually closed bearish, indicating potential opportunities for short positions.
Additionally, the analyst highlighted an expanding diagonal pattern, which suggests further downward movement. The analyst advises traders to consider risk-reward scenarios when planning trades, particularly when targeting lower EMA levels.
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Show more +Bearish Trend and Relief Rally Predictions
Cheeky Crypto also predicted a brief relief rally, suggesting a potential move within the 57.1-58.9 cent range. However, the rally is expected to face resistance and result in a rejection, continuing the bearish trend.
The analysis identified low trading volumes and high volatility as factors adding uncertainty to the market, especially with the Federal Reserve’s interest rate decisions contributing to the current environment.
The speaker further mentioned that XRP had reached the 1.618 Fibonacci level, a key indicator of an impulsive breakdown pattern. This level strengthens the bearish outlook for the token, aligning with the overall market sentiment.
Read also: Fantom (FTM) Price Surge: Analyst Predicts Potential 2x Run
Risk-Reward Scenarios for Traders
Traders looking to capitalize on XRP’s current market behavior were advised to focus on specific risk-reward strategies. Cheeky Crypto discussed potential ratios, with targets ranging from 1.5 to 2.65, especially for those taking short positions.
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