Disclaimer: The findings of the following analysis should materialize by mid-July
June 2020 hasn’t been smooth sailing for XRP, the market’s fourth-largest cryptocurrency. After the dramatic decline in March, XRP peaked on 29 April after touching the price point of $0.23. Since then, however, it has been all downhill for the cryptocurrency. In the month of May, its price was still consolidating at a higher range, but in June, the token has consistently fallen on the charts with respect to its market cap, something evidenced by Tether overtaking it.
After recently dropping below its support level of $0.181, the forthcoming month on the calendar could be critical for XRP’s future.
XRP 12-hour chart
As mentioned above, XRP has continued to go on a downside since April, with the token continuing to oscillate between the trendlines of a descending channel. Now, over the past two months, XRP has breached multiple important supports at $0.211, $0.193, and recently $0.181. Under the circumstances at the time of writing, the crypto-asset was poised to possibly touch $0.162 as well, but a bullish breakout might prevail after that.
Hence, a breach above $0.181 could be expected in the next few days and for mid-July, $0.20 seems like a reasonable target. The reality, sadly, might possibly unfold a very different picture.
It is fairly certain that a bullish tail hasn’t been evident on XRP charts for a very long time. With the price, at press time, mediating below the average of the descending channel, another price blowout below $0.162 will be catastrophic for XRP. The valuation may get dragged down to $0.146, a level that is fairly close to the valuation last noted a week after March’s market collapse.
A recovery towards $0.20, or $0.181 even, would be deemed impractical, with multiple resistance levels in front of the crypto-asset. Hence, XRP must maintain its consolidation above $0.162 to remain hopeful for a bullish rally on the charts.
Further, market indicators continued to side with the growing bearish momentum, but the MACD line suggested that a trend reversal might be possible as the Signal line and the MACD line remained in close proximity to each other.
Conclusion
XRP should possibly re-test $0.20 by the middle of July, but faces an immediate re-test at $0.162 over the next few days.
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