Despite the ongoing SEC lawsuit against Ripple, XRP showed promising bullish signs over the past several days. Owing to the euphoric run by Bitcoin above the $40K, XRP along with the altcoin market saw a massive price rise. However, following the weekend correction, the crypto-asset reversed its gains and slid below several crucial recently breached support levels.
The crypto-asset was down by 16.07% over the last 24-hours which drove its price to $0.289. At the time of writing, XRP held a market cap of $12.84 billion and a 24-hour trading volume of $9.66 billion.
The coin’s price was currently in indecisive and was currently hovering close to an important level, a move above which could give the bulls some hope.
XRP Daily Chart:
Despite a positive start to the day, XRP has failed to gain a strong foothold at the $0.3 mark. The latest slip proved damaging for the crypto-asset as several technicals flipped bearish.
The moving averages, for instance, demonstrated a gloomy picture. The 50 DMA [Pink], hovering above the price candles, continued to resist an upward breakout. Following the latest market downturn, the 200 DMA [Blue] challenged the price for an extended bearish onslaught.
If XRP fails to hold the current position, a plunge to pre-bull level might become inevitable.
The MACD contiued its bullish crossover formed in the first week of January. Despite the divering lines, the MACD was above zero which was a positive indicator that the bulls were defending the current price level of $0.3 even as the bears managed to sink the price lower.
However, the Stochastic RSI formed a bearish crossover, closely mimicking the price action, and suggested a position in the overbought zone. This could essentialy imply that a reversal might be on the cards which could cause a price decline in the short-term.
The RSI has suffered severe resistance by the 50-median line and has failed to make a move above it in more than two weeks now. The indicator showed that the bearish momentum and high sell pressure which overpowered XRP.
While $0.3 is an important level of defense, XRP might face a great deal of difficulty in holding the fort above it. Subsequent level of resistance was found near the 50 DMA at $0.45 while its supports stood untested at $0.21 and $0.18 respectively.