Every minute rolling by makes it look clearer that XRP may fall into a deep plunge from which the top cryptocurrency may take a while to recover. As of now, the XRP/USD trading pair is amid a triangle pattern forming very close to the bottom of the Bollinger band indicator.
Altogether bearish for XRP, the Resistance Strength Index (RSI) ricocheted the 40.0 level. As RSI makes a turn in the direction of the oversold condition, it appears as though the sellers will control the market much longer than we expected. The only saving grace can be a bullish candle closing above two important indicators: the Bollinger band bottom and the RSI level 40.0.
The XRP/USD pair is currently changing hands at $0.182 per unit amid a 24-hour market cap of $8.1 billion. Exchange volume within the same time period stands around $1 billion. The trading pair however stands the chance of either of any two possible outcomes at the very breakout of the triangle.
XRP/USD 4-Hour Chart
On the 4-hour chart, a higher price got rejected at the $0.19 resistance level (60.0 RSI) and sellers dragged prices towards the support at $0.18. The trend remains bearish although a struggle between 30.0 and 40.0 RSI level has been in play for a couple of hours.
The next closing candle will determine the next line of action. Although it may likely be bearish, sellers will have the advantage to take the price lower to the immediate support at $0.18. Below this level, support lies around $0.176.
In the unlikely event that a bullish breakout occurs, we will see XRP climbing the charts towards $0.19. Above this, further resistance lies at the $0.2 level where the midline moving average of the Bollinger band forms a confluence.