XRP risks major collapse as price nears 1-month low

Several top cryptocurrencies retreated as the cumulative market cap fell to $1.29 trillion. XRP was also going through a period of underperformance that has extended its weekly loss to 10.29%. The squeeze in volatility depicted a period of stagnancy in the coin market which was trading sideways. The buying pressure is significantly weaker.

XRP was still down by 0.52% over the 24-hours and was being traded at 0.52%. At the time of writing, the crypto-asset registered a market cap of $26.98 billion and a 24-hour trading volume of billion.

XRP Daily Price Chart

XRP sustained a death cross after its 50 DMA [Pink] moved below the 200 DMA [Yellow] on the 19th of June. This was accompanied by the digital token’s price which gradually spiraled down. Interestingly, this is the first death cross in five months. The 100 DMA [Yellow], on the other hand, continued to hover above the price candlesticks resisting any upward price action The ill-fated volume continued to impede the asset’s growth which was trapped inside the rangebound for almost a month.

A case of a steep decline could very much be on the cards.

Metrics goes for a toss after death chart

The Chaikin Money Flow [CMF] fell from the bullish territory depicting a decline in capital inflow to the coin market. The Klinger Oscillator [KO] was also on the verge of a bearish crossover. The Relative Strength Index [RSI] was also nearing the extreme oversold conditions.

Immediate support is at $0.54, a level that was last seen almost a month back. If the bulls fail to defend this area, XRP could slash half of its gains to test another support level of $0.21.

Looking at the behavior of the above charts, there were no hints for a bullish reversal as volatility in the coin market faded. The moving averages acted as XRP’s overhead resistance levels at $0.75, and $1.03 respectively.

Chayanika Deka: Chayanika is a full-time journalist at TronWeekly with over two years of experience. A graduate in Political Science and Journalism, she focuses on the political and financial impact of cryptocurrency and blockchain developments.