- XRP price sliced through the range high at $0.785 after a 19% upswing.
- The MRI has flashed a sell signal, suggesting that a downtrend will likely originate before the next run-up.
- Investors can expect this pullback to lead to a new uptrend that aims to tag $1.
XRP price has shattered the long-standing resistance barrier and retested the subsequent ceiling. Since Ripple failed to flip the second level, it is likely that rejection is in progress, and a pullback will follow it.
XRP price anticipates a correction
XRP price has rallied roughly 19% over nearly four days as it sliced through the range high at $0.785. This uptrend tagged the resistance barrier at $0.827 but failed to close above it. Therefore, rejection at this barrier will lead to a pullback. Supporting this narrative is the Momentum Reversal Indicator (MRI) which flashed a sell signal in the form of a red ‘one’ candlestick on the 4-hour chart.
This technical formation forecasts that a one-to-four candlestick correction will ensue. Assuming this retracement arrives, Ripple will most likely find support at $0.785 or the support level at $0.725.
In some cases, Ripple might form an equal low at $0.688 before triggering a new uptrend. The double bottom would be the perfect precursor to a new uptrend. Assuming it does begin, the rally will most likely shatter through $0.785 and flip $0.827. If the buying pressure continues to pour in, the $1 level will be the next target for the bulls.
All in all, if XRP price tags the $1 ceiling, it would constitute a 45% ascent from $0.688.
XRP/USDT 4-hour chart
Regardless of the bullish outlook of the entire market, the tables will turn if XRP price forms a shatters $0.688. This move will generate a lower low, opening up the possibility of a shift in trend favoring the bears.
If such a move were to occur, Ripple might move to the 50% Fibonacci retracement level at $0.647.