- XRP price is back below the bear flag, threatening a move deeper south.
- A 20% drop to $0.85 likely if the bulls fail to support XRP.
- An upward Kumo development may end the current downtrend.
XRP price showed signs of recovery last Friday (November 19th)NS, 2021), up up to 6% and closing nearly 5% higher on the day. Nonetheless, Sunday’s price action has pushed XRP below the bear pennant, which continues to threaten a price decline.
XRP Price Action Failed To Hold Above Bear Banner
The XRP price is under real risk of a rapid 20% drop. A close below $0.99 would put XRP below the last level of support in the large volume knot. Below $0.99, the volume profile becomes very thin, indicating a quick move from $0.99 to the next high-volume node at $0.93. And at less than $0.93, the folder profile size becomes even thinner.
A potential support for XRP price at the daily close below $0.93 will be the 38.2% Fib retracement level at $0.84. But from a Volume Profile perspective, XRP could quickly explode through $0.84 to test the 50% retracement at $0.64 due to the huge gap in the volume profile between $0.84 and $0.64.
However, the current downtrend may end soon due to the case of Ichimoku known as Kumo Twist. Kumo Twists are simply instances where a Senkou Span A intersects above or below a Senkou Span B. Visually, the event changes the cloud from red to green or green to red. Most important about the Kumo Twist is how the short-term and long-term trends interact with the history of the Kumo Twist.
XRP / USDT Ichimoku Daily Chart
When the instrument is in a clear trend or correction as it approaches the date of the Kumo Twist, there is a high probability of a trend reversal or correction. In other words, if the XRP price continues its downtrend on the date of the Kumo Twist, November 24thNSXRP price is likely to find support and move higher. Therefore, the first target for the bulls to create a new uptrend would be to close above the cloud ($1.07 or higher) on November 24th.NS.