Ripple (XRP) trend analysis: XRP has seen 5 straight days in the red, with no slowdown in sight
- Ripple is now running at 5 consecutive days of closing in the red.
- Next downside targets for the bears; $0.64, $0.57 and $0.42.
Ripple has been heavily hit by the crypto market wide selling being observed, given some of the recent key areas of support having been breached, the move may not be quite over yet. Specifically looking at the pressure seen with Ripple, the price initially encountered some issues late Monday night, after Coinbase denied it was going to be adding new instruments to the exchange, as XRP was whispered to have been one of these potentially. XRP closed that session with a gravestone doji on the daily candlestick.
Given the late downbeat news for Ripple (XRP) investors, the price continued the trend lower into Tuesday, which resulted in a break of a key supporting trend line. This has been running from December 2017, the support was initially tracking around $0.90, before being broken. $0.84/0.85 area which has been a safety net on several occasions for XRP, was take out on Wednesday. Another door opened for the bears to continue their domination, eyes are now on $0.64, a proven buying area, to potentially catch this falling price. Next downside targets for the bears to keep an eye on; $0.57 6th February low, $0.42 lows seen during bull run in December, before the continued move higher.
Looking on the shorter time frame, 1H, the price can be seen bouncing firmly lower within a descending channel pattern. As the momentum across the crypto market is moving in lock-step, during this pursuit to the south, the price may be stuck within this pattern. Technically, the upper trend line is currently tracking around $0.80, which will cause resistance. To the downside, the lower trend line, is tracking around $0.72, which should support XRP for now. Should the price break out of the current formed pattern, regardless of which direction, the movement could very well be chunky. A bear move could see the extreme lows in February tested at $0.57. On the other side of the market. A breakout higher with the bulls, will see the $0.86 region tested again, which may prove some difficulty in moving back above.
A general observation now, in terms of partnership announcements for Ripple, regardless of which technology is being used by external parties, there is a lack of influence on price action. It seems investors are keen on the exchange updates, very much hoping for Coinbase to materialize into reality, to then see decent upside for Ripple (XRP).