XRP price aims for pain as bears target $0.40 and lower
- XRP price demonstrates stair-stepping price action to the downside.
- Ripple price has breached oversold levels on the Relative Strength Index.
- Invalidation of the bearish thesis can occur if the bulls reconquer $0.50.
XRP price shows a powerful downtrend developing. Key levels have been established.
XRP price is falling sharply
Ripple's XRP price is building momentum to the downside as the bears have lost support from the $0.47 level. On October 17, the Relative Strength Index (RSI) breached oversold territory on the 30-minute chart as the digital remittance token displays stair-stepping price action to the downside. If market conditions are as genuinely bearish as they seem, a sweep of the October lows will likely occur.
XRP price currently auctions at $0.45. The 8-day EMA and 21-day SMA catalyzed the current decline on Monday, October 17, rejecting the XRP price from the $0.485 level. If market conditions persist, the moving averages are likely to produce a bearish death cross, which will spell serious trouble for bulls in the market.
XRP/USDT 30-Minute Chart
A sweep of the October lows at $0.44 is now just 3% away from the current market value. Investors should expect the lows to get tagged based on the RSI and stair-stepping price action The next key levels of interest are the congestion zones at both $0.40 and $0.37.
Invalidation for the bearish downtrend is a breach above $0.50. If that’s the case, a countertrend rally towards the September highs at $0.56 could occur, resulting in a 22% increase from the current XRP price.
In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market. -FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
