XRP Collapses By 17% – Are We Heading Beneath February Low?

By Yaz Sheikh
Published February 26, 2020 Updated February 26, 2020
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XRP Collapses By 17% – Are We Heading Beneath February Low?

By Yaz Sheikh
Published February 26, 2020 Updated February 26, 2020
  • XRP dropped by a sharp 9% over the past 24 hours of trading as it crashes beneath both 100-days and 200-days EMA.
  • The cryptocurrency has now seen a 17% price plummet of the past 7-days of trading as it trades around $0.244

XRP dropped by a steep 9% over the past 24 hours of trading as the coin dropped to the $0.244 level. It had started to fall toward the middle of February after reaching resistance at $0.337 and has continued to drop ever since.

The latest price drop has now caused XRP to break beneath support at both the 200-days EMA and 100-days EMA as it drops to the opening price for February.

XRP Price Analysis

XRP/USD – Daily CHART – SHORT TERM

cg-xrpusd-feb26
XRP/USD – Source: TradingView

Market Overview

Since our last analysis, we can see that XRP finally broke beneath the rising trend line that we have been tracking. It penetrated beneath the 200-days EMA and continued to drop beneath the 100-days EMA until support was found at $0.2345. 

After reaching this support, we can see that XRP rebounded higher to reach where it currently trades at around $0.244.

Short term prediction: NEUTRAL/BEARISH

The drop beneath both the 200-days and 100-days EMA has put XRP in danger of turning bearish during the short term. A break and close beneath $0.2345 would certainly confirm this bearish trend.

If the sellers push beneath the current $0.24 support, additional support is found at $0.239, provided by a downside 1.618 Fibonacci Extension level. This is then followed with additional support at $0.2345 and $0.227 (.886 Fibonacci Retracement level).

On the other hand, if the buyers rebound from $0.244 and push higher, resistance lies at $0.25, $0.26, and $0.268.

The RSI has now fully dropped into the bearish territory as they take control over the market momentum. We can expect the RSI to drop further lower and reach oversold conditions before we might see the bearish momentum fading.

Key Levels

Support: $0.243, $0.239, $0.2345, $0.23, $0.227, $0.218.
Resistance: $0.25, $0.253, $0.264, $0.27, $0.28, $0.285, $0.29, $0.30, $0.308, $0.3177, $0.326, $0.377.

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Disclaimer
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.
About Author
Yaz Sheikh
182 Articles
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.

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