Price Analysis XRP / USD: Ripple-Promoted Token In Free Fall
Ripple is smashing through all supports in a wider market dump.
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- Ripple has bearish short-term trading bias, after the XRP / USD pair fell below key support on the four-hour time frame
- The head and shoulders pattern on the four-hour time frame is highlighting the $0.2300 level as a possible bearish target
- The XRP / USD pair has now broken below its 200-day moving average
Ripple / USD Short-term price analysis
Ripple has a bearish short-term trading outlook, with the XRP / USD pair falling below its 200-period moving average on the four-hour time frame.
The four-hour time frame is showing that the XRP / USD pair has triggered a head and shoulders pattern, with price trading well below the neckline of the bearish pattern.
Technical indicators across the four-hour time frame are bearish and continue to generate sell signals.
Pattern Watch
Traders should note that the bearish head and shoulders pattern on the four-hour time frame has a downside projection of around $0.1300.
Relative Strength Index
The RSI indicator is also bearish on the four-hour time frame, although it is trading in extreme oversold territory.
MACD Indicator
The MACD indicator is bearish on the four-hour time frame, with both the MACD signal line and histogram still issuing sell signals.
Ripple / USD Medium-term price analysis
Ripple has a bearish medium-term outlook, with the XRP / USD pair now trading below its trend-defining 200-day moving average.
The daily time frame is showing that the XRP / USD pair is now trading back inside a narrowing wedge pattern, following an apparent false technical breakout to the upside.
Indicators on the daily time frame are bearish and continue to issue a strong sell signal.
Pattern Watch
Traders should continue to monitor critical trendline support on the daily time frame around the $0.2950 level.
Relative Strength Index
The Relative Strength indicator on the daily time frame is bearish and continues to issue a sell signal.
MACD Indicator
The MACD indicator on the daily time frame is bearish, with both the MACD signal line and histogram issuing strong sell signals.
Conclusion
Ripple has now turned technically bearish across both time frames, with the XRP / USD pair appearing increasingly vulnerable to further downside losses.
The cryptocurrency is likely to fall towards its current 2019 trading low if a sustained technical breakout occurs below the important $0.2950 support level.
Find out more about Ripple in our coin guide.
A deeper look into the merits of the project can be found in our DARE.
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