Ripple Price Analysis: XRP/USD shatters $0.20 support, is $0.1750 the next stop?
|- Ripple price is in danger of refreshing the lows traded in December at $0.1750.
- A falling wedge pattern could be the only hope the bulls have for a reversal in the near term.
Ripple price has broken below the critical $0.20 level on Thursday towards the end of the Asian session. The losses are in tandem with other major digital assets. For instance, Bitcoin is down 3.97% to trade at $7,612 while Ethereum is trading 6.85% lower on the day. XRP/USD has lost 6.4% of its value on the day following a correction from $0.2085 (opening value) to $0.1948 (market value).
It is apparent that the selling action could continue in the European session due to the bearish trend and the high volatility witnessed. Ripple price continues to drop farther down from the moving averages. The 200-day SMA at $0.25 and the 50-day SMA at $0.2549 have turned into resistance lines. However, with the 50 SMA above the 200 SMA, it could mean that all is not lost for XRP/USD as the bulls still have some energy to put a stop to the declines and push for consolidation before recovery comes.
The falling wedge pattern also shows that there is light at the end of the tunnel which helps the investors make sense of the saying ‘it’s darkest before the dawn.’ In other words, XRP/USD is expected to make a bullish reversal above the falling wedge pattern.
The RSI, however, shows that Ripple will remain inclined to the downtrend in the short term. It’s returning to the oversold region is the first since December when Ripple price tanked to $0.1750. Ripple has to hold above the support at $0.19 and push for gains above $0.20 to avert the risks of refreshing the December lows.
XRP/USD daily chart
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