XRP's $0.50 Support Could Offer Some Relief in The Short Term 16

XRP’s $0.50 Support Could Offer Some Relief in The Short Term

  • XRP continues to exhibit weakness on the daily chart
  • XRP/USDT is currently trading below the 200-day moving average and seems destined for a death cross
  • Buyers of XRP are yet to step up to the plate and return it to bullish territory
  • XRP’s $0.50 support remains strong with a retest of this level likely

The remittance coin of XRP has undergone a 74.5% correction from its April 14th peak value of $1.9669, to its June 22nd low of $0.50. At the time of writing, XRP is trading at $0.615 which is a 68.7% pull-back from the local peak value set in mid-April.

XRP Continues to Trade Below the 200-day Moving Average with a Death Cross Looming

A quick glance at the daily XRP/USDT chart below reveals that the remittance coin is clearly in bearish territory as it is still trading below the 50-day, 100-day and 200-day moving averages as highlighted below.

XRP's $0.50 Support Could Offer Some Relief in The Short Term 17

Also from the chart, it can be observed that XRP is on a clear path towards forming a death cross in the next week or so. Such an event could in turn become an obvious signal for bears to keep selling the remittance coin in a bid to push it to lower levels.

The indicators on the daily chart paint a similar scenario for XRP. The MACD is confirming a bearish environment with a reduced interest by buyers. The daily MFI and RSI are also pointing towards an ongoing correction for the remittance coin.

XRP’s $0.50 Support Could Offer Some Relief in the Short Term

If the bearish scenario continues to play out for XRP, the remittance coin could find some support at the $0.50 price area that held during the crypto-wide sell-off of June 22nd.

This possibility of retesting $0.50 was also explored by the team at Crypterium research, who also identified market weakness by XRP as explained below.

Next came XRP, which dropped 7.7% over the week. Its price came out of the rising wedge to the downside, as we expected…as buyers are not at all eager to buy this asset. Over the next week, we expect to see an even stronger decline in the price of this asset up to $0.53.