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Ripple (XRP) Correction May Continue as Downtrend Line Remains Intact

Today, Ripple (XRP) has fallen to $0.194 low after it reached the overbought region at $0.235. The downward move has been systematic. As sellers emerged at the overbought region, XRP dropped to $0.21 and resumed upward correction. The correction was interrupted at the $0.225 resistance. Buyers failed to break the resistance and the downtrend line. Consequently, on May 10, a breakdown sank Ripple to $0.175 low. The price corrected upward again but was stopped at the $0.205 resistance.

XRP/USD - 4 Hour Chart

XRP/USD – 4 Hour Chart

The coin has been trading below the current resistance. On the upside, if the bulls break the current resistance or the downtrend line, the market would have risen to retest the overhead resistance. The downtrend will continue as long as the downtrend line remains unbroken. However, as buyers fail to breach the resistance at $0.205, XRP fell to $0.19 low. Currently, price is fluctuating above the current support.

XRP  in a Downtrend as the Market Reaches a Period of Indecision

On the daily chart, XRP reached the overbought region at $0.235 high. The selling pressure of the coin resulted in two breakdowns.

XRP/USD - Daily Chart

XRP/USD – Daily Chart

On April 30, the coin fell to $0.208 low and continued the downtrend. The second breakdown on May 10 led the coin to a low $0.175 but the market was characterized by small body candlesticks like Doji and Spinning tops. The candlesticks describe that buyers and sellers are undecided about the direction of the market.

Key Levels to Watch

  • Key Resistance Zones: $0.35, $0.40, $0.45
  • Key Support Zones: $0.25, $0.20, $0.15

The Stochastic Indicator

Ripple is below 40% range of the daily stochastic, indicating that XRP is in a bearish momentum. The price action is also showing bearish signal at the time of writing. The downtrend is ongoing because the bulls fail to break the resistance levels.

The Relative Strength Index (RSI) Indicator

XRP is now at level 43 of the Relative Strength Index period 14. The coin is in the downtrend zone. Ripple tends to fall because it is below the EMAs and the bearish trend zone.


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