- 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
 (42)-637195874159737473.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Axie Infinity price recovery delayed despite investor deposits hitting a five-month high
Axie Infinity price, following the broader market cues, is trending downwards for the moment as the bearishness in the market has grown considerably. Incited with the regulatory crackdown by the Securities and Exchange Commission (SEC), the investors have resorted to offloading their holdings for now.
Coinbase to keep cornerstone staking service after CEO Armstrong fires shots at the SEC
Coinbase Exchange has committed to maintaining its cornerstone cryptocurrency staking services after CEO Brian Armstrong countered the US Securities and Exchange Commission (SEC), demanding regulatory clarity.
Cardano price signals accumulation as ADA crashes by nearly 10% in 24 hours
Cardano price took a critical hit on June 7 as the entire crypto market continues to suffer the impact of the regulatory crackdown against Binance and Coinbase. Amidst this chaos, the investors that bore the loss found an opportunity for recovery, but it does not sit in the hands of retail investors.
BNB price falls 10% as US court summons Binance CEO, Changpeng Zhao
Binance Coin is down a staggering 20% since June 4 to the current price of $260.93, representing a 10% downswing since the beginning of the Asian session on June 7. The leg down comes in light of recent developments in the case between Binance versus the US Securities and Exchange Commission (SEC).
Bitcoin: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.