XRP/USD’s monthly candle is likely to close lower than current levels and extend its two-year downtrend
XRP has consistently posted lower highs and lower lows for more than 900 days, according to one analyst. With the price just 0.58% in the green as of press time, it appears the fourth-largest cryptocurrency by market cap could test the weekend’s lows before the end of June.
A 4% dive on Saturday saw the cryptocurrency’s price drop to its lowest price since March 13. The risk of more damage to the price has left the digital asset as one of the biggest underperformers, despite its price rising over 50% since it dropped to lows of $0.15 in the first quarter.
Bitcoin and the rest of the crypto market rose from Black Thursday to post impressive medium-term rallies, with XRP/USD topping $0.24 on April 30. However, despite that brief rally, the cryptocurrency has remained in a downtrend since hitting its all-time high of $3.84 on January 4, 2018.
Ripple’s bad days have collectively seen XRP/USD slump to values nearly 95% lower than it was at its all-time high.
Ripple has been posting lower highs for more than 901 days, and the current cycle will likely see it touch lows of $0.15 again before fresh buying pressure materialises.
XRP/USD technical outlook
Sellers have managed to push the XRP/USD pair below a descending triangle, with buyers now relying on the support at $0.175 seen on the Fibonacci’s 50% retracement level.
In the short term, a breach below this support level would bring $0.171 into the picture. Added sell-off pressure could mean the next crucial support at $0.157 provides 61.8% retracement.
On the upside, XRP bulls must battle resistances at $0.185 and $0.19 at the 20-day SMA. If buyers break above this level, (also the Fibonacci 38.2% retracement), the next major hurdle is at the 100 EMA at $0.20. This is a psychological level that needs to be breached for extended gains to bring in April highs of $0.24.
As shown on the daily chart, Ripple price cuts under all major SMAs and short term picture isn’t helped by the sloping RSI. Sellers are therefore still in control, and sentiment needs to shift for Ripple to break the cycle of lower highs and lower lows.
Ripple has a market cap of $7.86 billion.