Like most cryptos, XRP has been in a heavy daily downtrend and has lost 33% of its value over the past 16 days. The digital asset has struggled to find a support level but was able to set a higher low at $0.224 and bounce up to $0.241 a day later.
Unfortunately, today, the market is bleeding again and XRP has plunged to $0.233 and it’s in danger of breaking below $0.224. XRP is still up 26% since the beginning of 2020 and analysts are still somewhat hopeful for the future of the digital asset.
XRP Short-Term Forecast is Negative
Although XRP has seen a decent 5.5% bounce yesterday, the bears have taken control again and they are currently on the way to break below the last support level.
The 4-hour chart is still in a downtrend even though the bulls were able to break above the last high at $0.236. However, they still need to set a clear higher low compared to $0.2294 and then break the last high to confirm the uptrend.
The bulls managed to briefly keep XRP above the 26-period EMA, unfortunately, bears were able to take control again and have pushed XRP below both the 26 and 12-period EMA. Another issue for the bulls is the lack of trading volume, even during the bounce, the volume has been quite low in comparison to the last crash.
The hourly chart is now in a downtrend as the RSI slowly approaches the oversold area where the bulls might try to apply some pressure and perhaps set a 4-hour higher low. If the bulls cannot see a bounce from the overextended RSI, XRP will be in trouble.
At the same time, Ripple has moved around 70 million XRP in a few consecutive transactions equaling around $16 million. Ripple has been selling XRP for quite some time but has significantly reduced the rate at which they are selling it.
Most indicators are signaling to sell right now with most oscillators being neutral and 14 of 17 Moving averages signaling a strong sell for XRP.
Do you think XRP’s recent bounce was just a dead cat bounce?