XRP loses long-term support after a considerable fall

XRP loses long-term support after a considerable fall

  • The XRP passed under a long term upward support line, as well as under the $0.32 support.
  • Technical indicators for both the day and the long term are bearish.
  • The price of the XRP could be in a third broad bearish wave.

The XRP price has declined significantly over the past week, closing below $0.32. The XRP price has been on a downward trend for the past week. The latter was previously used as a support.

Until the XRP regains this zone, the long-term trend is considered bearish.

Long-term levels of the XRP

The weekly chart shows that the XRP has declined to close below $0.32. The weekly chart Crypto Investor shows that the XRP has declined to close below $0.32. The weekly chart shows that the XRP has declined to close below $0.32. This is a zone that has been in support since November 2020, when the price exceeded it.

This is a significant bearish development, suggesting that the price may fall further as the $0.32 zone is now expected to offer resistance.

At the time of writing, the XRP was trading just above the $0.21 support. If it moves below this support zone, the next one will be at $0.175.

Technical indicators are clearly bearish. The Stochastic Oscillator has formed a bearish cross and the RSI has dropped below 50.

Cryptocurrency trader @tradingTank shared a chart of the XRP, wondering whether or not it will manage to hold above a crucial support despite the abundance of particularly negative news.

The data and price movement in the weekly chart suggest that the XRP will not be able to stay above its support. In order to get a better perspective of the movement, we need to look at the daily chart.

The day chart shows that the XRP has also moved below an upward support line in place since March.

This is another bearish sign suggesting that an even lower price may be ahead. As in the weekly chart, the technical indicators in the daily data are bearish.

The two-hour chart shows another drop, this time the minor support at $0.27. The two-hour chart shows another drop, this time the minor support at $0.27. There are also no signs of an upward reversal on the two-hour chart.

Wave count

The wave count for the XRP is similarly bearish, suggesting that the price is in a third extended wave (in orange). The latter could bring it down to the aforementioned $0.175 support. After a possible rebound, it could then decline once again.

The sub-wave count is shown in black, as the price is currently in sub-wave 5.

Conclusion

The XRP is expected to decline towards the $0.175 zone before a potential rebound. The long term trend is likely to be downward.