Ripple is staring into the abyss after $0.20 support gave in to the increasing seller grip.
A falling triangle pattern spells doom for XRP/USD as bearish signs point to $0.19.
Ripple, for a couple of days this week was at its tipping point ($0.20). This followed a reversal from an incredible rally that hit a wall marginally above $0.21. However, with the price action currently extending far below $0.20, it seems the direction XRP will be following in the coming sessions has already been decided.
XRP/USD is teetering at $0.1970 at the time of writing. As mentioned, gains above $0.20 became unsustainable just as the seesaw movements at $0.20. The immediate downside is supported by the 50 Exponential Moving Average (EMA) in the 4-hour range. Buyers are fighting for gains in order to regain control of the $0.20 level.
XRP/USD 4-hour chart
On the upside, the 21 EMA is standing in the way of the price action. Correction above this moving average could blast Ripple into a trajectory above $0.21 in a similar manner as witnessed on July 6 when the price rallied from $0.1750 to highs above $0.21 on July 9. Farther up above the current market value, is the falling triangle resistance. The action above this triangle is likely to see the bulls push above $0.21 and pave the way for gains above $0.25.
Meanwhile, the prevailing technical picture continues to deteriorate. The Relative Strength Index (RSI) has a gradual negative gradient towards the oversold region. In addition, the Moving Average Divergence Convergence has crossed under the midline, reinforcing the selling activities. It is apparent that losses would continue in the short term. If the triangle support caves in, we can expect Ripple to plunge to $0.19 support and even refresh lower levels.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com