XRP price is extending losses with a 1.42% drop today, June 21, to trade at $2.13. The altcoin has been under bearish pressure this month as sellers seek a breakdown from a seven-month consolidation range. However, bulls are fighting to defend their support with the ratio of longs clocking a new monthly high.
XRP Price Analysis & Prediction
The XRP price outlook on the daily timeframe shows that bears are having the upper hand. Since the May 12 swing high of $2.65, Ripple’s price has been on a steep downtrend, and it is now entering a demand zone that previously catalyzed a reversal.
However, a reversal may not happen soon because the CMF indicator is making a descent, which indicates that buying pressure is easing. If this indicator continues to decline and falls to the negative side, the outlook may flip bearish, and XRP may crash below $2.
The volume histogram bars, whose size has been shrinking for several months, also highlight waning trader interest towards XRP. This lack of interest has forced XRP into a seven-month consolidation with no clear breakout.
Given this technical structure, it is clear that the short-term forecast for XRP price is bearish, and as CoinGape recently reported, Ripple may fall to $1.80.
Key Levels to Watch
The one-day chart also depicts some key levels of support and resistance that XRP traders need to watch to confirm a breakout or a breakdown. One of the main levels is the support zone that lies between $1.99 and $2.09, which the price has been defending for the last six months after XRP started to drop from the January peak of $3.40.
If XRP price falls below this support, it could decline to a multi-month low of $1.61.. However, in case Ripple’s price bounces from this support with strong buy volumes like it did in April, it will have shaken out “weak hands,” giving room for healthy price growth.
The main resistance level lies at the 200-day SMA of $2.37. Until XRP can overcome this resistance, the momentum could remain under bearish pressure. However, if it can get to this level and trigger a massive XRP short squeeze as reported by CoinGape, it could kickstart a bullish reversal to the next supply zone that lies between $2.73 and $2.83.
XRP Longs Hit Monthly High
The long/short ratio as depicted on Coinglass data reveals that traders are beginning to lean bullish, suggesting optimism towards the price recovering soon. This ratio has surged to 1.035, marking the highest level in nearly one month.
This surge coincides with a 44% spike in derivative trading volumes within 24 hours, highlighting increased interest from traders opening long positions on the XRP price. In case more traders flip bullish, buying pressure may begin to surge and support a strong bounce from support.
In conclusion, XRP price remains under the control of bearish traders as sell-side activity outpaces buy-side activity. Meanwhile, the key support and resistance levels to watch are $1.99 and $2.37, respectively, which will determine whether Ripple crashes further or rebounds.
