The entire cryptocurrency market has faced a small crash yesterday with continuation today and XRP has followed suit. Unfortunately, XRP was hit far harder than most major cryptocurrencies with a 12% loss over the course of 2 days.
XRP has hit a low of $0.18 which is a level not seen since November 2017 before the bull run. There are however a few things to note here, for instance, the 24h trading volume has been really low today and yesterday even though the bear break was clearly significant. This, in a way, shows some weakness for the bears as the RSI has crossed into oversold territory.
Rupture On The Horizon?
The digital currency has been weak for the majority of 2019 and even during the mini bull run at the beginning of the year, the digital asset struggled in comparison to other cryptos. All charts for XRP are showing vulnerability and a huge and extended downtrend that seems like it won’t stop any time soon.
XRP is one of the few cryptocurrencies that are trading below their price at the beginning of 2019. For instance, Bitcoin has also been in a downtrend for the past few weeks, however, it is still trading 2 times higher than what it was in January.
Jacob Canfield, a cryptocurrency analyst and frequent guest trader on Forbes and CNBC, has been scrutinizing XRP quite hard. He states that he has been warning friends and family members against buying XRP in 2018 or 2019 and says that maybe if XRP hits $0.15-0.10 it might be a good idea to buy but investors should still be careful.
The only hope for the bulls is the fact that RSI levels have plummeted across all timeframes including the weekly chart. The RSI hasn’t been this low on the weekly chart since pretty much ever according to Bitfinex.
Unfortunately, an overheated RSI doesn’t necessarily mean that an asset will bounce immediately and it could take days or even weeks before we see any kind of bounce attempt.
Bulls should focus on the hourly chart first and try to create a bounce here as the MACD is on the verge of a bull cross and the RSI is still in the oversold area. Once the bulls control the hourly chart, they can start focusing on the 4-hour and daily charts. Trading above $0.20 would be ideal.