Bitcoin lost support at USD 9,300, dragging down much of the cryptomoney market. As a result, XRP fell towards the support zone around USD 0.1925, resuming the downward trend it was bringing for the short term. Below is a situational analysis of Ripple to forecast its near future.
Technical analysis of the XRP trend
To identify the medium-term trend, let’s review the weekly candlestick chart. Currently, there is a clear succession of decreasing highs, indicating a downward trend.
Recently, the historical support zone around USD 0.1350 was reached and rejected, reaffirming the importance of this demand zone.
After the rejection, we could observe an important recovery that still maintains, but still does not show the necessary strength to indicate a reversion of the trend in the medium term.
The 8-week EMA and 18-week SMA moving averages are crossed downwards. In order for them to start giving upward signals, the USD 0.22 resistance must be crossed. The next relevant barrier is above USD 0.29.
Crypto analysis: What is the trend of Ripple (XRP) in 2020?
On the daily candlestick chart the picture also indicates a downward trend, in this case for the short term.
After the breakout of support at USD 0.21, the bears took temporary control of the
- Immediate Edge
- Bitcoin Billionaire
- Bitcoin Code
- Bitcoin Evolution
- Bitcoin Era
- The News Spy
- Bitcoin Circuit
- Bitcoin Revolution
- Bitcoin Trader
- Bitcoin Profit
price, and were able to drag it into the next demand zone around USD 0.18.
Subsequently, a decline towards USD 0.204 was observed. In addition, as a result of the recent fall of Bitcoin, the downward trend resumed.
Today we see Ripple recovering and trying not to lose support at USD 0.1925.
At the moment we have the EMA of 8, SMA of 18 and SMA of 200 days are all bearish, so it’s more than clear what is the short term trend of XRP.
For a change in direction, the bulls must be able to effectively break the resistance at USD 0.20400.
Expecting a shift in market sentiment will have a lot to do with what Bitcoin does in the next few hours.
Bitcoin Pizza Day: What’s the BTC trend on this special day?
Bitcoin Technical Analysis
Given BTC’s dominance of the crypto market, it is relevant to analyze at this point where bears have taken temporary control.
From the BTC/USD chart on a daily basis, we can easily observe the recent turn of the short-term trend.
After multiple attempts to reach and break through the psychological barrier at USD 10,000, buyers showed weakness and ended up losing the battle in a small consolidation.
Bears effectively broke through the support at USD 9,300, generating the bearish cross of the 8-day EMA and 18-day SMA.
It is now crucial that buyers try to regain control, as the continued decline may weaken the strength of the chain by causing a major outflow of computing power due to unprofitable mining activity.
To observe this turnaround, it is necessary for the bulls to soon wrap up yesterday’s downward spiral. Otherwise, a drop to the nearby support zone at USD 8,450 may occur in the short term.
The 200-day SMA is still bullish and could work as a good support if the price tries to fall further.