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XRP price momentum shifts to the downside as Ripple bears take over

  • Ripple price is under pressure today as XRP price corrected 10% in just two trading days. 
  • XPR price sees earlier support holding for now, but tailwinds start to fade. 
  • Expect bears to push for another leg lower towards holding another 8% losses.

Ripple (XRP) price is on the back foot for a second day as bulls see their attempts for a pop higher being blocked by the tilted orange upper boundary line. Following the rejection by that and the bounce off the green ascending trend line, bears have now taken control of XRP price action. Expect further downside as bears are dictating for now. Look for proper support levels from which to pick up XRP coins at a discount.

XRP price sees first halt for bears and initial entry for bulls

Ripple price is under pressure as the sell-off accelerates during the second down day for XRP.. Bulls saw bears taking over on a pivotal moment with the rejection at the intersection from the green ascending trend line and the orange descending boundary line. Bears have come in strong and pushed price action back towards $1.09. 

XRP price reaction should not come as a surprise, as the bearish hand was already visible earlier last week. The candles of November 09 and 10 were not able to hold above the orange upper boundary line, reflecting  the pivotal shift in volume from buy-side to sell-side. The fade from the orange  line means bears have had almost a whole week to gear up and build momentum in their favor. The Relative Strength Index (RSI) confirms this as it has broken below the neutral area and still has more room to go before touching the oversold barrier.

XRP/USD daily chart

XRP/USD daily chart

Expect XRP bears to take profit at $1.09 and possibly test $1.05 as the RSI still holds more room to fall. Bulls could use these levels as entry points for a fade-in trade. If more headwinds pop up, expect a move towards the 200-day Simple Moving Average around $1.00. This would probably put the RSI in oversold and therefore see bears taking their profits and coming out of significant short positions, offering bulls a chance to take over the helm again.



 

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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