XRP is threatening to fall further in the coming weeks despite the stunning intraday price action.
The price of XRP rose significantly on August 26, indicating the possible influence of some large traders.
Large XRP Transfers, Ripple Swell Global Event
Notably, in the first hours of operation in London, the price of XRP rose 6% to $0.37, a two-week high. The token’s bull run comes just hours after its network processed three $51 million in bulk transfers involving crypto exchanges Bitso and FTX, as highlighted by Whale Alert.
Hourly XRP/USD chart. Source: Trading View
XRP’s rise was also part of a broader bull run that began on August 25, the day after Ripple announced its flagship Ripple Swell Global event to be held in London in November 2022. past.
Setting up a bearish reversal in the game
The XRP intraday top left a graveyard doji, a bearish reversal candle with open, close and close lows along with a long upper wick. This candlestick suggests that the price rally at the beginning of the session was suppressed by the bears towards the end.
XRP/USD 4 hour chart. Source: Trading View
Right now, XRP is trading almost 4% below its intraday high and is testing a confluence of support. The confluence includes the upper trendline of the previous XRP ascending triangle (at $0.35) and the 50-4 hourly exponential moving average (50-4 hourly EMA; red wave in chart above) near $0.343.
Technically, a break below confluent support risks re-starting an ascending triangle setup with a profit target of around $0.33. In other words, a 7% price drop during September to the price of August 26th.
Read also: Ripple CTO hits back at Vitalik Buterin for his XRP dig
Conversely, a bounce after testing the confluence of support could see XRP target a recovery towards the $0.36-$0.38 range (marked in red in the chart above). This area has served as a consolidation area for XRP for the past few months.
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