Ripple’s bearish leg has become stronger after ignoring a possible double-bottom pattern reversal.
XRP/USD losses could extent to $0.35 but the buyer congestion at $0.4 may absorb the selling pressure.
Ripple’s breakdown has been unstoppable ever since it hit a yearly high at $0.82. Selling pressure has continued to rise, shattering key tentative support levels, including $0.7, $0.65, and $0.6. XRP bulls tried to hold the price above $0.5 but they were unsuccessful.
For now, the cross-border token is busy hunting for formidable support but the search is likely to come unrewarded owing to the fact that a possible double-bottom pattern has been ignored. Tentative support held the ground at $0.45 before XRP dipped to $0.44 (prevailing market value).
The bearish narrative appears to have been validated by the Relative Strength Index, as it dives deeper into the oversold area. The bearish leg is poised to continue to $0.4, where buyers will try to force a rebound. However, the breakdown has the potential of reaching the level at $0.35 before a significant recovery comes into play.
XRP/USD 4-hour chart
It is worth mentioning that the bearish scenario will be thrown out the window if Ripple bounces off the intraday low at $0.43. The impact of the ignored double-bottom pattern may still be present, and perhaps will support a recovery, at least above $0.5.
XRP recovery movements are likely to be hampered by the seller congestion at the 200 Simple Moving Average. Further up, the 50 SMA will stand in the way of upward price action eyeing $0.55.
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