- The XRP price failed to hit a higher high on July 18, indicating weak buying pressure.
- Investor David Tice warns investors of a major meltdown in the equity and cryptocurrency markets.
- Failure to consolidate or cushion the demand zone between $ 0.547 and $ 0.568 could result in a sharp decline.
The XRP price is currently hovering above a critical demand zone from which no higher high has been reached. Such a development suggests that buying pressure is relatively weaker.
Market collapse not too far
While the cryptocurrency market saw a burgeoning bull run in 2021, things have gone wrong for the past three months. Bitcoin price has consolidated in a tight range and is not showing any obvious bias.
Former Prudent Bear Fund manager David Tice recently mentioned that cryptocurrency and stock markets are in a dangerous phase. Two of its main reasons are the rise in debt and overpriced futures profits.
While the markets have recovered quickly after the COVID scare, Tice believes that “we are not out of the woods yet”. The investor added that his fund had been Bitcoin long for $ 10,000 but pushed the flagship cryptocurrency into the overpriced zone when it hit $ 60,000. Tice mentioned that at around the same time as this rally, the turmoil among central bankers had increased, adding even more credibility to his bearish thesis.
As the big crypto moves sideways, XRP and other altcoins take a hit. Most cryptocurrencies are all down more than 50%, suggesting investors are cashing out.
XRP price in a difficult position
XRP price plunged into the demand zone between $ 0.547 and $ 0.568 on July 17th and has only rebounded 7%. This weak rebound suggests insufficient buying pressure from the bulls.
As long as Ripple price does not reach a higher high above $ 0.621, the likelihood of a downturn penetrating the aforementioned demand zone increases.
Therefore, in the future, investors can expect the Remittance Token to break through USD 0.568 and generate a 4-hour candlestick closing price below USD 0.547. This move confirms sellers are in control and opens a path to the range low at $ 0.509, a 12% downturn.
If buyers fail to save the XRP price here, the immediate support levels will likely be marked at $ 0.509 and $ 0.496.
XRP / USDT 4-hour chart
While this downward move seems plausible, investors should note that a rebound from $ 0.568 could revive the rally if XRP price manages to make a high above $ 0.611. Such a move would confirm the presence of buyers and invalidate the bearish outlook.
Additionally, buyers could push Ripple to the 50% Fibonacci retracement level at $ 0.647 if bids continue to build after this uptrend.