The price of XRP took a U-turn yesterday after initiating a bearish price movement which sent its price crashing below the $0.2 level. Although the top cryptocurrency is still up by around 11% on a weekly price chart, it appears the gains of the week will soon be erased by an actively forming strong bear market.
XRP/USD caught the bullish momentum about a week ago when Dogecoin surprised the entire crypto markets with a strong buying pressure.
This motivated XRP alongside other major alts like Eth, LINK, XLM, and ADA to also make their respective bullish returns. Amid this excitement in which Dogecoin became the top gainer with over 90% 1-week, XRP followed suit with around 21%.
At present, XRP is changing hands at $0.195 while the market is capped at around $8.69 billion. In the last 24 hours, XRP volume exchanged is values at around $1.56 billion. Further move downwards is highly probable as it seems a price correction is bound to occur.
XRP Technical Analysis
Prices faced rejection at the $0.2 level when the Resistance Strength Index (RSI) touched the 81.0 level. As the overbought condition caused a price correction below the 50.0 midlevel, the sellers, being more energetic now, will cause further downfall. At present, XRP price is heading for the $0.190 level after breaking the support at the $0.196 area.
Below $0.190, the next level of major support lies at $0.185. The price is now at 50% Fibonacci retracement level of the gain accrued before yesterday. Further down pull caused by RSI moving towards the oversold condition at 30.0 is highly probable. In this turnout of events, XRP will be trading at around $0.185 by the end of the day.
In the reverse situation, the 40.0 RSI level which coincides with the major support at $0.196 may cause a price bounce and give the bulls an advantage.
At this junction, the price may look to break the next resistance at $0.2 level where it was initially rejected. A break above this level will set XRP sailing towards the next resistance at $0.21 in the short term.