XRP Price Analysis: Bearish Signals Take Hold as Token Slips Below Ascending Trendline
- Susan SarandonOriginal
- 2024-10-09 15:36:141052browse
Ripple's XRP token shows signs of weakness as its price slips below the ascending trendline, signaling a possible bearish shift in the cryptocurrency market.
Highlighting a shift in the cryptocurrency market, Ripple’s (CRYPTO: XRP) XRP token displayed signs of weakness as its price slipped below an ascending trendline, signaling a potential bearish pivot.
The token, which had been trading within a rising pattern since July, faced a sharp breakdown on October 2, prompting concerns among traders and investors. The price decline, paired with specific on-chain data, highlighted the possibility of further downward movement for this altcoin.
Bearing the brunt of selling pressure, XRP was valued at $0.5329 at the time of writing, continuing to trade in a tight range after failing to breach crucial resistance levels. Notably, the cryptocurrency was rejected from its daily resistance level of $0.544 earlier this week, intensifying concerns of a further decline.
Moreover, the token’s price currently sits below the 200-day EMA, which has become a resistance point. If the cryptocurrency fails to recover above this critical threshold of $0.544, it could face a further downturn, possibly dropping by as much as 18% to retest its August 5 low of $0.432.
Adding to this bearish scenario, the MACD indicator on the daily chart has confirmed a bearish crossover since October 2. This technical signal, combined with red histograms below the neutral level, suggests that downward momentum remains strong and firmly in control of the token’s short-term trajectory.
On the other hand, a recovery from the 200-day EMA could propel XRP to encounter resistance at the 100-day EMA ($0.58) and Fib 0.236 ($0.59) levels. If the token manages to rally past these levels, it could face further resistance at Fib 0.382 ($0.63).
XRP Price Awaits Clear Direction, Technical Indicators Offer Mixed Signals
XRP’s price hovered around $0.533 on October 5, showcasing a slight decline from the previous day. The token faced difficulties in breaking past crucial resistance levels, which could lead to a bearish pivot.
However, technical indicators provided contrasting signals, leaving the future direction of XRP uncertain.
After rising above the 200-day EMA, which acted as a resistance point, XRP encountered a sharp price decline on October 2. This breakdown occurred following a failed attempt to cross a Fib level and the 100-day EMA.
If the cryptocurrency fails to recover above the 200-day EMA, it could face a further downturn, possibly dropping by as much as 18% to retest its August 5 low of $0.432.
Adding to this bearish scenario, the MACD indicator on the daily chart confirmed a bearish crossover since October 2. This technical signal, combined with red histograms below the neutral level, suggested that downward momentum remained strong and firmly in control of the token’s short-term trajectory.
However, a recovery from the 200-day EMA could propel XRP to encounter resistance at the 100-day EMA ($0.58) and Fib 0.236 ($0.59) levels. If the token manages to rally past these levels, it could face further resistance at Fib 0.382 ($0.63).
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