XRP price screams sell, increasing risk of 20% drop
|- XRP price looked promising last month for the jump higher.
- Global sentiment in cryptocurrencies is taking a turn for the worse.
- Ripple could not break two triangle formations to the upside and looks to be losing support.
XRP price gave investors headaches again this morning after it broke to the downside. Only one support barrier is present to prevent Ripple prices from going down to $0.50.
XRP price is hanging by a thread and it looks ready to snap
XRP price looked promising and full of potential the past few weeks when it recovered from the dip at $0.50. The technical rally looked solid with several indicators pointing in the right direction.
But sentiment flip-flopped last weekend, and XRP price saw sharp declines, breaking the technical play that was driving it higher. Not only did Ripple break the big triangle to the downside, but it even sliced through below the second smaller triangle.
Temporarily, it looked like $0.645 would be strong enough to provide some support, but that gave way this morning. Now, there is just one more support left for Ripple bulls to hold onto and that is that orange descending trend line from June 1.
With even the 55-day Simple Moving Average (SMA) becoming resistance, XRP price could not stay above it anymore.
XRP/USD 4-hour chart
Ripple holds the orange descending trend line for now, but the RSI is not yet in oversold territory. This means a lower low may be in the cards, and if that gives way, a correction toward $0.50 is more than likely. Not much short-term help is available to support price action.
A bounce off the descending trend line, however, could do the trick, and if XRP price reclaims the 55-day SMA again, more upside potential could be the outcome.
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