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October 2, 2022
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XRP may be about to fall off a high cliff: eyes fixed at $ 0.40

After an excellent month in November, the Ripple token may end up having a difficult month ahead

XRP is being negotiated under intense pressure, risking a massive free fall back to $ 0.40. Losing support at $ 0.40 would be a blow to the progress that the Ripple token made in November. For now, the path of least resistance is down, as seen in the 4-hour chart.

The lower limit of the parallel descending channel appears to be holding the fort for the bulls. However, the Relative Strength Index reinforced the ongoing bearish momentum. If the indicator reaches the oversold area, sales orders are likely to increase significantly.

The simple moving average of 200 on the 4-hour chart is also aligned to offer immediate support, and buyers should maintain that crucial support. Otherwise, XRP / USD could drop to $ 0.40 (next provisional support area).

4-hour chart – XRP / USD

XRP / USD price chart by Tradingview

The daily chart also confirms the bearish outlook, suggesting that the next critical support is at SMA 50. Likewise, the RSI is in an upward movement, but has not yet reached the oversold area. This could mean that the XRP bears still have enough space to explore before recovery comes into play.

Daily chart – XRP / USD

XRP / USD price chart

XRP / USD price chart by Tradingview

On the other hand, the bearish chart will be invalidated if Ripple closes the day above $ 0.50. In addition, support at the lower limit of the channel, as well as the SMA 200 in 4 hours, would guarantee the upward trend if they remain intact. The most significant bullish move for the cryptocurrency would be to overcome the $ 0.6 barrier.

Source: Coingape

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