Ripple experienced a massive increase during the previous intraday session. It started trading at $0.66 but dropped and retested the $0.64 and rebounded. Afterward, it surged to retest $0.75 but failed in this bid as it faced strong rejections at $0.74. Following this action it retraced and closed a little above its opening price.
The reason for the massive surge was fundamentals. Rumors of Blackrock filing for an XRP ETF spread throughout the market during the previous session. As a result, the coin shot up more than 10% but soon lost momentum. This was due to the firm coming to refute the claims.
At the time of writing, XRP is still experiencing corrections. It is currently trading at $0.65 from an opening at $0.67; a clear indication of an almost 3% drop. Indicators are also pointing to more downtrends.
Ripple Enroute a Bearish Divergence
Since November 17, ripple has been recording small decreases in value. The downtrend started with prices around $0.71. It soon retraced to a low of $0.65 before rebounding. It soon closed at $0.68 with losses of more than 4%. Another major decrease happened two days later as the coin lost more than 3%. Following these significant decreases, XRP experienced small drops.
As a result, metrics like the Moving Average Convergence and the Relative Strength Index are displaying bearish signals. For example, a closer look at MACD shows that the 12-day EMA just intercepted the 26-day EMA. With an impending divergence, it points to further price decreases.
On the other hand, RSI is also dropping. It dropped from a peak of 87 to the current 67. This further highlights the gradual decrease in buying volume and momentum. If the most recent trend continues, XRP may lose a key support.
Key Levels to Watch
Vital Support: $0.58, $0.54, $0.50
Vital Resistance: $0.64, $0.72, $0.90
A few minutes to the time of writing, $0.64 became a resistance. Although not one of the toughest, the asset is currently exchanging at $0.62; an established barrier. Nonetheless, over the last five days, XRP traded below $0.70. Before that, it briefly broke the $0.72. The current price suggests that the altcoin may need several attempts to flip it.
After breaking the highlighted barrier, there are no other critical levels in sight until $0.90. It is worth noting that a surge to this mark is very unlikely this year.
The most likely action is further downtrends. One of the marks to keep an eye on is the $0.58 support. The current low suggests that XRP is close to testing this critical mark. Once it flips, the next tough level is the $0.54 barrier. Following more than five rebounds around it, it is one of the levels to bank on.
If it fails, ripple traded for an extended period around $0.50. This means this mark may act as both a level for rebound and resistance.
