The most recent drop in XRP price reaffirmed the short-term bounce-back bias from the support at $0.32. The dominating bearishness on Ripple’s daily chart was already picking up steam before the price dropped below the Exponential Moving Average (EMA) ribbons, which intensified the trend.
Meanwhile, buyers try to prevent the recent pennant breakdown’s downward momentum. However, reversals from $0.3319 would encourage sellers to renew their vigor, ushering in a sluggish phase. At the time of writing, XRP was trading at $0.3303, down more than 11% from its 30-day high.
Time Period of Daily Ripple
After nearly 2 months of upward channel oscillation, sellers retook control from the token’s long-term supply range of $0.36 to $0.39. Because of the abrupt change in direction, the ribbons under the Exponential Moving Average have begun to reverse. Due to the bearish pennant break, the remittance token has broken through $0.334, which was previously acting as support but is now acting as resistance.
In light of the widening chasm between the southbound Exponential Moving Average ribbons, XRP bears may be plotting a reversal from $0.33 from here. Ripple might potentially test the support at $0.32 if it reverses from its current position at $0.33.
If you are looking to sell your bitcoins, now is not the time to do it.
If XRP were to close the current session below this support level, the bearish trend would be amplified, perhaps sending the price of XRP tumbling to $0.309 in the days to come. Before attempting a price move around the 20-day exponential moving average, buyers should fortify themselves. That could lead to them shattering bearish shackles around the aforementioned price range just as the press releases are being distributed.
In the last two days, the RSI (Relative Strength Index) has stayed near the zero-point. A final close above 50 could indicate that selling pressure is beginning to ease. The Accumulation/Distribution (A/D) trend also showed small bullish divergence with XRP prices, with bigger troughs indicating A/D strength. A reversal from the closest resistance level would lend credence to the existence of this divergence.
The DMI lines, meanwhile, settled into a reasonably unbiased pattern. However, ADX showed that XRP was not part of a strong directional trend. The secondary token will respond in the same way to macro market trends.
As a Closing Remark
Because of Ripple’s recent downward trend below $0.33 and the southward movement of the Exponential Moving Averages, XRP sellers likely intend to maintain their current position in the coming trading sessions. The underlined areas would remain as targets. In addition, XRP bulls should analyze the broader market attitude and BTC’s activities for any signs of bullish invalidation.