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The XRP/USDT pair rallied for the past two months under the influence of a rising parallel channel pattern. This pattern pushed the coin price to a record high of $0.4079; however, the technical chart shows the price has maintained a local top at $0.387. Amidst the recent sell-off in the crypto market and the Fed US interest hike hint of 0.75% in September, the XRP price reverted from $0.387 and initiated a new bear cycle.
Key points from XRP analysis:
- Higher price rejection at $0.36 indicates intense supply pressure.
- The potential bearish crossover between the 20-and-50-day EMA may accelerate the bearish momentum for the further downfall.
- The intraday trading volume in Ripple is $14.7 Billion, indicating a 43% loss.
Source-Tradingview
The bearish reversal from $0.387 resistance tumbled the XRP price by 14.5% and plunged it to the $0.332 mark. Moreover, this price drop gave a decisive breakout from the pattern’s support trendline, positioning an upcoming downfall. Furthermore, the last seven days of recovery have acted as a retest phase for pattern fallout.
Completing this pattern will suggest the end of short-term recovery and position the XRP price to prolong its downfall to the $3 psychological mark.
Inverted Flag Pattern Offers Additional Confirmation For Upcoming Downfall.
Source-Tradingview
The four-hour time frame showcased the recent retest rally shaped into an inverted flag pattern. In theory, this bearish continuation pattern encourages sellers to extend the prevailing downtrend once the price breaks through its support trendline.
Thus, the XRP price is 2.4% down today and shows a decisive breakdown from the pattern’s support trendline. This setup gives an additional confirmation for sellers and bolsters them to breach the monthly support of $0.332.
This fallout should intensify the bearish momentum and sink the XRP price by 9.5% to revisit the June-July bottom support of $3.
Technical Indicator
EMAs: the combined resistance of 20-and-50-day EMA at $0.36 assisted sellers in defending this barrier. Thus, the EMA slope has slipped into the viable resistance levels.
RSI: the RSI slope drops below 30%, accentuating the aggressive selling activity in the market, supporting the $0.332 breakdown theory.
- Resistance level- $0.36 and $0.387
- Support level- $0.332 and $0.3
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