After an impressive streak that led to a multi-year price high, XRP took a significant plunge as it dropped by nearly 15% over the last 24-hours. XRP/USD saw a massive sell-off right after the news of Spark snapshot. The speculations drove the coin’s price to establish new local highs, in the first week of December, while its peer cryptocurrencies underwent severe corrections.
The current scenario, was, however, quite different. XRP is yet to stabilize even as Bitcoin and other top altcoins resumed an uptrend. It declined by1.46% over the last 24-hours which drove the coin’s price to $0.511. At the time of writing, the coin registered a market cap of $23.1 billion and a 24-hour trading volume of $9.925 billion.
XRP Daily Chart:
XRP recorded gradual loss over the past couple of weeks and was found to be oscillating between the trendlines of a descending triangle which connected lower highs of the token and marked the base for the triangle at $0.495
This pattern, which indicates a bearish undertone despite multiple recovery attempts, was validated by the declining volume over the same period of time. The pattern formation further indicated that the coin’s price candles would continue to consolidate between the two trendlines before breaking to the negative side of the baseline.
Technicals Yet To Confirm A Bullish Trend
The MACD also suggested a bearish phase as the signal line continued to dominate the fate of XRP after a bearish crossover in the first week of December. To top that, the indicator also depicted an increase in selling pressure in the XRP market as the bars fell under 0, thereby exhibiting that this pressure was only increasing.
The RSI, too, fell below the 50-median line after breaching the overbought zone depicting a period of intense selling pressure among the investors in the coin market.
Despite the formation of a green candle, XRP could potentially face rejection at $0.55. If this does not materialize, then the above pattern would be invalidated. In which case, it could target its closest resistance level of $0.689. Another resistance level was found to be at $0.779.
However, a reversal in the current trend appears less likely. And the above charts depicted the dominance of bears in XRP’s price. Its price was supported by the two moving averages at $0.407 and $0.277 respectively.