Ripple price analysis: XRP drops to $0.58 support after failing to break resistance

TL;DR Breakdown

  • Ripple price dropped another 2 percent to move closer to $0.58 support
  • Price showed some bullish momentum to test $0.70 resistance yesterday
  • Bearish trend started through the larger market with Bitcoin’s failure in testing the $40,000 mark

Ripple price analysis shows bearish signs today, with price dropping dangerously close to support at $0.58 with a 2 percent decline. XRP showed upwards momentum yesterday, rising up to $0.62 to bring resistance into test at $0.70. However, the momentum died down quickly as the market faced a larger decline due to Bitcoin’s rejection at $40,000. Key resistance for XRP still lies at $0.65 and further selling would take the 10 percent increment made earlier in the week out of the market. Over the next 24 hours, price is expected to consolidate near and above $0.58 support with no upwards rally in sight over the weekend.

The larger cryptocurrency market lied in the red zone during the past 24 hours, with Bitcoin declining down towards $37,000. Ethereum saw a slight dip but stays above $2,500 with Altcoins also struggling. Cardano moved down to $1.05, Dogecoin declined 2 percent to sit at $0.139, and Solana dropped a massive 9 percent to move down to $101.30. The only positive movement was observed with Terra, rising less than a percentage to sit at $50.74.

Ripple price analysis: Cryptocurrency heat map. Source: Coin360

Ripple price analysis: 24-hour chart confirms low market valuation

The 24-hour candlestick chart for Ripple price analysis shows price lowering towards $0.58 support with major technical indicators supporting the decline. XRP showed positive momentum during the week with a 10 percent increment to take price above the crucial 25 and 50-day exponential moving averages (EMAs) at $0.616. This was erased during the day’s trade, with trading volume lowering to push Ripple into the red zone. The relative strength index can be seen making higher lows, sitting below 35 to show weak market valuation for the token. The current downtrend will only end when the RSI starts to make higher highs.

In comparison, the moving average convergence divergence (MACD) remains above its neutral zone due to a bullish crossover that it managed yesterday. This may be encouraging to buyers to indicate that the price pullback may only be short-term. Conversely, the MACD could be providing a false bullish signal and it is recommended to give XRP price more time before initiating further buying or selling.

Ripple price analysis: XRP drops to $0.58 support after failing to break resistance 2
Ripple price analysis: 24-hour candlestick chart. Source: Trading View

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