Ripple (XRP) price crossed above the $0.6500 level yesterday, but the increasing bearish pressure caused halted the bullish momentum, and the price retraced below the level. Ripple price closed the last day at $0.5780 with bears dominating the markets towards the end of the day.
The broader cryptocurrency has also seen a significant bearish movement in the last 24-hours with the price of Bitcoin receding below the $23,000 mark. Similarly, most altcoins have also erased their recent gains while some like Filecoin (FIL) has turned bearish across the weekly frame.
Across the daily frames, we can observe that Ripple price had been trading inside a descending channel since the start of December until December 15. During this period XRP declined from highs of $0.6813 to the lows of $0.4370 before the buyers maintained a support level.
The bulls maintained key support at the level, and the price saw a sharp reversal and the price recovered to $0.650 by December 16. However, the bullish momentum exhausted at the level and the price declined below the $0.500 level.
Across the last 24-hours, XRP price has observed strong bearish sentiment as the price continues to decline towards the $0.500. The price action has defended a support level at $0.500, but the p[rice action is yet to turn bullish across the daily-frames.
Across the technical indicators, the MACD shows declining bearish momentum, but the indicator has not turned bullish since turning red on December 4. However, while the indicator shows decreasing bearish momentum, the convergence between the two EMAs has decreased as the 12-day EMA’s motion has stagnated in recent candles.
Meanwhile, the RSI remains near the 50.00 mark suggesting room for high volatility to occur in the next few days. Similarly, the Bollinger Bands are currently in a squeeze suggesting that the next few days may see high price volatility.
Across the hourly frames, we can observe that Ripple price bottomed out at $0.43703 on December 16 before the price action turned bullish. The bullish momentum guided the price in a strong and sharp uptrend raising the price above the $0.5500 mark before the day’s end.
The bullish momentum extended to the next day as the price rose above the $0.600 mark and XRP briefly crossed above the $0.6500 mark before retracing. The price declined to $0.5500 level before the buyers stopped the descent. Since then, the price action has consolidated between the $0.5500 mark and the $0.600 resistance level.
Across the technical indicators, the RSI has returned to neutral conditions with the recent correction. The RSI trades low suggesting little room for downwards movement. Meanwhile, the MACD shows declining bearish momentum as the two EMAs converge steadily.
The Bollinger Bands are currently in a squeeze suggesting high volatility in the near future.
Traders should expect Ripple price to observe sideways movement at the level before returning to test $0.600 resistance level. However, if bears breach the $0.5500 support level price may be expected to retrace to 0.500 psychological level.
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