- Ripple is among the biggest daily losers following the struggle that bore no fruits at $0.3800.
- Technical analysis show there is looming bear pressure that is likely to send Ripple further down.
Sellers are returning to the cryptocurrency market and this time, they have only one mission – to revenge. Ripple is among the biggest daily losers following the struggle that bore no fruits at $0.3800. The formation of a double-top pattern as observed on the 4-hour chart has seen buyers scatter as bears take over control.
A double top pattern is usually associated with a trend reversal especially in the market that has been moving upwards. XRP/USD could not find support at $0.36,00, $0.3400 and even at $0.3200. The price extended the declines to the area around $0.31188.
The 4-hour chart shows Ripple having recovered to $0.3384 and is sitting comfortably above the 200 Simple Moving Average (SMA). The growing bullish momentum must clear the resistance at $0.3400 for a continued upward move past the broken trendline support.
However, Technical analysis show there is looming bear pressure that is likely to send Ripple further down. The Relative Strength Index (RSI) in the 4-hour range has taken a hit from the high levels achieved in the first week of April (88.95). It has refreshed the lows reached on March 26 below 30.00. The signal is currently attempting to change the direction upwards.
The stochastic oscillator, on the other hand, is sloping further down after breaking below 50.00. The indicator was recently rejected from the levels close to the overbought range but it avoided the oversold region. A divergence from the signal line shows that XRP/USD is likely to continue trimming gains in the coming sessions on Thursday.
Key Technical Indicators:
RSI 4-hour: 37.31
Stochastic oscillator 4-hour: 39.84
200 SMA 4-hour: 0.3269
Resistance 1: $0.3400
Resistance 2: $0.3600
Resistance 3: $0.3800 (last week’s seller congestion area).
Support 1: 200 SMA 4-hour
Support 2: $0.3300
Support 3: $0.3000
Primary support area: $0.2800
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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