Ripple Price Analysis: Eyes $0.20 amid rising channel breakdown
- Ripple bears gather pace, aiming for a test of $0.20 mark.
- Correction to extend in the near term amid bearish technical set up.
- Hourly RSI is heading into oversold territory, still not out of the woods yet.
Ripple (XRP/USD) is extending Sunday’s losses and the correction from the seven-week highs of 0.2357 reached last Thursday. The price met fresh supply in the last minutes and now loses nearly 5% to trade around 0.21 region, quickly reversing a dip to 0.2073 low. The third-most favorite cryptocurrency has started out a fresh week on a bearish note, tracking the negative sentiment across the crypto space. Its market capitalization stands at $9.34 billion.
Short-term technical outlook
As seen on the hourly sticks, the price spotted a rising channel breakdown in early Asia, having failed to resist above the rising trendline (channel) support at 0.2163. The breakdown occurred after the 21- hourly Simple Moving Averages (HMA) breached the 50 and 100-HMA from above and paved the way for a steeper fall towards the $0.2000 mark.
Over the last hour, the coin ran through fresh offers after a brief consolidative stint, now looking to accelerate the downside after the bounce was rejected at 200-HMA at 0.2121. The hourly Relative Strength Index (RSI) is probing the oversold territory, suggesting further scope for the downside.
Alternatively, a sustained move above the 200-HMA will drive the pair towards the support-turned-resistance near 0.2160 where the bearish 21-HMA coincides. All in all, the path of least resistance appears to the downside.
XRP/USD 1-hour chart
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
