Ripple Technical Analysis: XRP/USD False Channel Breakout? Recovery Stalls Short Of $0.30

By John Isige
August 20, 2020 Updated August 20, 2020
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Ripple XRP
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  • Ripple embraces support at $0.28 but recovery stalls marginally above $0.30.
  • XRP/USD is in the middle of a reversal from the resistance at $0.28; lower leg eyes $0.28 and $0.27 support areas.

Ripple like Bitcoin scaled several barriers after this week after bulls built on the consolidation experience last week above the key support at $0.27. The recovery movement saw XRP climb above $0.30 and this time it sustained the gains. The leg up extended past $0.32 before the resistance experienced early in August came into the picture.

A reversal on Wednesday affected the majority of cryptoassets including Ripple, Bitcoin and Ethereum. Bitcoin dropped under $12,000 and even refreshed levels slightly above $11,500. Ethereum, on the other hand, slumped from levels above $430 to confirm another support at $405.

Consequently, XRP tanked under $0.30 on hitting the barrier at $0.3250. The bearish leg extended to $0.28 (short term support). Attempts have been staged to clear the resistance at $0.30 but the bearish grip keeps getting stronger.

XRP/USD 1-hour chart

XRP/USD price chart
XRP/USD price chart by Tradingview

Meanwhile, XRP is trading at $0.2886 at the time of writing. A growing bearish grip is highlighted by the Relative Strength Index (RSI) after changing direction before hitting the average (50). The RSI is currently holding at 40 but could drop lower if the technical picture remains unchanged.

It is clear that Ripple will take a longer time to rise above $0.30. In fact, the support at $0.28 and $0.27 could first be tested before buyers begin to build momentum for a massive breakout like the one on Tuesday. The break above the descending channel failed to materialize as XRP has lost steam marginally above $0.29 culminating in the ongoing return into the channel is expected as buyers seek formidable support, preferably at $0.27 if not $0.28.

Ripple Intraday Levels

Spot rate: $0.2880

Relative change: -0.0022

Percentage change: -0.76

Trend: Bearish

Volatility: Expanding

Read more: Ripple Price Forecast: XRP/USD Must Reclaim $0.30 To Get The Bullish Mojo Going – Analyst

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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