Ripple price analysis: The ball is in the bears court; short-term declines imminent
|- Ripple drops 2.6% on the day while stuck in bearish range.
- XRP/USD must break the range resistance for a break above $0.5.
- A catalyst will go a long way in revamping the trend above $0.50.
Ripple is hanging in the balance after the bears mauled the bulls following the recent surge. Ripple set the ball rolling as the bulls to charge in September. The price surged more than 100% as the bulls distance themselves from the bears. Ripple price tested the critical level at $0.7 before investors began offloading their coins for profit. At present the ball has left the bulls hands and is now dancing in the bears court.
Since October started Ripple continues to struggle below the descending trendline. The bears do not see to be stopping anytime soon. From the resistance at $0.7, the price has been losing value destroying various support areas. The support at $0.58, $0.54 and $0.52 tried to stop declines but the bear pressure has been too high. However, in the past few days, Ripple has formed a consolidation range with the resistance limit at $0.5 and the support limit at $0.46. Both of these limits are breakout points.
Ripple is exchanging hands at $0.467 after dropping 2.6% on Wednesday 10. The trendline resistance is capping gains to the upside. A short-term supply zone is seen at $0.48 while $0.5 is key for a breakout towards $0.6. On the other hand, the buyers have a task to prevent the price from breaking the support at $0.46. This will prevent further trimming of gains which could eventually test $0.40.
The outlook of the chart shows that XRP/USD trading is mundane; a sitting duck that can be pounced upon by anyone. Bears are fighting for entries while buyers are keen on defending the support. A catalyst at this time will go a long way in revamping the trend above $0.50.
XRP/USD 1-hour chart
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