XRP Faces Growing Selling Pressure as Bears Build Strength
XRP has been one of the largest victims of the recent turbulence in the crypto markets, and it has failed to post any meaningful recovery from its recent lows that were set during a widespread market downturn in mid-August that sent many cryptocurrencies plunging towards their 2018 lows.
Analysts are now noting that this downwards pressure faced by XRP is currently showing no signs of letting up, and there is a strong chance that further losses could be imminent.
XRP Finds Support Around $0.25, But Bears Continue Expressing Strength
At the time of writing, XRP is trading down just under 1% at its current price of $0.257 and is currently trading up slightly from daily lows of $0.253.
XRP’s significant bout of downwards momentum first began in mid-August when its price tanked below its previous support level around $0.30, and the crypto has shown few signs of any growing technical strength in the time since this occurred.
Although $0.25 has proven to be a strong support level for XRP, Big Cheds, a popular cryptocurrency analyst on Twitter, explained yesterday that the crypto is currently showing a bearish divergence on its 12-hour chart’s RSI indicator, which means that another movement downwards could be imminent.
“$XRP #Ripple 12 hour – Hidden bearish divergence re: RSI,” he concisely noted while pointing to the below chart.
In addition to the current technical weakness that is being expressed by XRP, it is also important to note that a significant amount of tokens were recently transferred from Ripple to an unknown wallet, which may mean that the company is conducting for one of its quarterly token sales that many believe has gravely impacted XRP’s price action.
“522,552,373 #XRP (132,446,488 USD) transferred from Ripple to unknown wallet,” Whale Alert said in a recent tweet.
Assuming that Ripple continues to offload a significant amount of their XRP holdings onto the markets each quarter, it is highly likely that the cryptocurrency will continue facing dire conditions as more of its investors grow weary of it.
As the altcoin markets continue to closely track Bitcoin’s price action, investors may soon gain greater insight into whether or not XRP will soon be able to post a strong surge that negates the technical damage done by its recent downtrend, or if it will continue plummeting to set fresh multi-year lows.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.