- Ripple price gained ground to hover just above $ 0.72 but hit a barrier below $ 0.72.
- The loss of support at $ 0.7 opened the Pandora box as a correction to $ 0.64 became apparent.
Ripple price broke resistance at $ 0.7 on Tuesday. This move allowed the bulls to stretch the up leg to $ 0.72. However, seller congestion at the 200 Simple Moving Average (SMA) on the 2-hour chart stopped bullish action.
Meanwhile, XRP is trading at $ 0.68 after losing support at $ 0.7. Unless the floor above $ 0.7 is reclaimed soon, losses are likely to expand to $ 0.64. At the moment the path with the fewest hurdles seems to be going down, as can be seen from the short-term technical picture.
Why could the price drops at Ripple soar in the short term?
The short-term technical picture of Ripple is turning massively bullish according to the two-hour chart. Applied technical instruments such as the Moving Average Convergence Divergence (MACD) are in the process of sending a bearish signal. The indicator follows the trend of an asset and measures its dynamics.
If the MACD line (blue) falls below the signal line, it is a call to sell, as can be seen on the Ripple chart. Additionally, traders look for the MACD to cross below the zero line into negative territory to confirm the downtrend.
XRP / USD 2 hour chart
XRP / USD Price Chart from Tradingview
As bearish momentum gains strength, the Relative Strength Index (RSI) shows that bearish aggression is intensifying. Unlike the MACD, the RSI follows the trend of an asset and calculates its strength. A sharp drop from the oversold area suggests the sellers are in full control. A break below the midline and towards the oversold area would cement the bears’ hold in the market before the bulls reverse the trend.
On the other hand, a gold cross pattern has occurred where the 50 SMA crosses over the 100 SMA. The pattern suggests that despite the correction, the uptrend is still intact and ripple price is likely to secure higher support leading to its resumption.
Ripple intraday level
Spot rate: $ 0.68
Support: $ 0.64 and $ 0.58
Resistance: The 200 SMA
Disclaimer of liability
The content presented may contain the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.
About the author
John is a talented writer with over two years experience who actively contributes to the cryptocurrency industry by providing credible, engaging, and easy-to-read content. His main focus is on cryptocurrency price analysis and industry reporting. Let’s follow him on Twitter @jjisige