Ripple price action not able to enjoy calm waters as indicator points south
|- Ripple price action does not make the cut of the shortlist for traders this week.
- XRP price has momentum going against it, with the RSI pointing to more downside.
- Expect to see small but continuous losses mounting through the week as other cryptocurrencies outperform.
Ripple (XRP) price action dropped over 1% intraday as traders placed short-term bets this morning.. After a volatile few sessions last week, the XRP price has faded below $0.48, and the Relative Strength Index (RSI) has followed suit. Given the RSI was overbought at the beginning of October, and remains elevated, it has more room to fall until it hits oversold and a potential turnaround is triggered.
XRP price is put on the bench for a later comeback
Ripple price action looks set to say goodbye to $0.48 and fade more to the downside in what is projected to be a rather calm week. Seeing the bear market’s overall sentiment, this week would be the ideal moment for traders to make some long calls. But XRP price does not see trader inflow as the RSI has touched the overbought area a few days ago and now is set to drop to the oversold barrier, which goes against the current narrative, with other cryptocurrencies such as ETH price rallying on Monday.
XRP price could drop to the monthly pivot at $0.45, roughly 5% below where price action opened this Monday morning. More interesting will be to see how the 200-day Simple Moving Average (SMA) will behave at $0.4450. Should that provide support, expect the rally to kick in a bit later or next week.
XRP/USD Daily chart
The outcome at the 200-day SMA will be very binary – in the case of a breakdown traders should expect to see an accelerated move to the downside. That means that $0.42 would be quickly reached as losses start to double and even quadruple. Another interesting Moving Average offers itself at $0.41 in the form of the 55-day SMA, with the RSI reaching the oversold area by then. This could mark a turning point for XRP price in which it is underpinned and less likely to make new losses, however, in the event it does $0.37 and $0.30 will come back into play as potential downside targets.
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