XRP’s Bloodbath Persists; Price Stuck In Extreme Oversold Region

Despite a bullish start for all the major coins in the cryptocurrency ladder, XRP continued to wait for more losses. The cryptocurrency, which recently fell to the fourth position, started a relief rally as the new year dawned. However, signs of a much-needed upside were cut short. Its weekly losses totaled 23.34%.

Besides, XRP underwent a minor decline of 0.8% over the past 24-hours which drove its price to $0.22. At the time of writing, the crypto-asset registered a market cap of $10.11 billion and a 24-hour trading volume of $5.02 billion.

XRP’s price inaction has led to indecision among the market participants as the uncertainty continued to linger following delisting by multiple cryptocurrency platforms.

XRP Daily Chart:

XRP’s steep downfall has led the crypto-asset to shed most of its gains and test several support levels along the way. The moving averages have since moved above the price candles depicting an immense bearish pressure for an upside movement. Furthermore, the 50 DMA [Pink] reversed its course after diverging from the 200 DMA [Purple] which evidenced a shift towards a strong bearish sentiment.

Using the Fibonacci Retracement tool, some important levels of resistance have been identified which continued to thwart an uptrend.  Zooming in, XRP’s support-turned-resistance levels were found to be at $0.32, $0.41, and $0.48 respectively while its price was comforted at $0.17.

The OBV indicator also recorded lower lows in tandem with the price downtrend to exhibit that selling volume outweighed buying volume over the past few weeks. The trading volume per session has been low, during the same time.

Besides, Stochastic RSI dropped to a position in the oversold region. However, the indicator hinted at a reversal attempt which, if materialized would induce gains. The RSI too has been in the oversold region for more than a week now. Despite multiple attempts to break above, the indicator was in extremely oversold conditions with no signs of change.

If RSI does manage to bounce back, XRP could soon see relief and a shift in momentum to target the aforementioned levels of resistance. But if the negative pressure continues, the next level to watch for could be the current support level of $0.17.

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.