Lately, the XRP market has exhibited low volatility and a steady decrease, failing to hold on to its next support of $0.580 could have an even more cascading effect on its price.
At the time of writing, XRP was trading at $0.593, a 2 percent decrease from where it had been trading the previous 24 hours.
The cryptocurrency XRP has been trading inside the limits of a down-channel since the beginning of July, one that has progressively driven the cryptocurrency down to lower levels on the charts. Although the lack of volatility prevented an even more significant pullback, falling trading activity and volumes did have an impact on the price.
The 50-SMA (yellow) has moved closer to the 200-SMA (green), and a death cross would be the first for XRP in more than five months if it occurs.
The market’s attention has now shifted to the $0.580 support level, and while a previous analysis predicted that the region might serve as a springboard for the next recovery, there were indicators of more deterioration in the market.
Reasoning
For nearly two months, the Relative Strength Index (RSI) has been below 50-55, indicating that the bears have mostly controlled the price of XRP. Because of increasing negative pressure, the index’s downturn at press time was confirmed by XRP’s price movement as downward pressure gradually grew.
The On Balance Volume was likewise in a downward trend, indicating that selling pressure was continuing to outstrip purchasing pressure – a pattern that is unlikely to reverse given the absence of optimistic signs in the broader market at the time of publication.
While the Awesome Oscillator indicated some bullish momentum, it was not big enough to cause the index to go over its half-line, which kept it below the half-line for the time being.
Because XRP’s 20-day simple moving average (red) is also bearish, the price is expected to drop below $0.65 during the next several days. Meanwhile, market participants should be on the lookout for a closing below $0.580, as this might signal the start of another 12 percent slide towards the swing low of $0.509 set on June 22.
Conclusion
In the last few days, the cryptocurrency XRP has flashed a number of indicators that it will continue to fall in value.
It is possible that a break below the $0.580 support will result in a fast drop to the $0.509 line of defence, which is the next line of defence. In the event that XRP’s price closes below $0.580, traders may choose to short the cryptocurrency; however, it would be wiser to make long trades if the altcoin’s price hits a more critical support level.
Comments (No)