And with the Swell conference out of the way, “The Standard” offers little to no catalyst that can ignite a bullish insurrection.
What’s even worse is that bulls are virtually nowhere to be found. The cryptocurrency has been giving up so many key support areas that a widely-followed trader sees a massive dump on the horizon.
There’s no doubt that XRP is in a downtrend in both the macro and micro scales. What’s remarkable about the cryptocurrency’s bearish price action is its textbook descent.
DonAlt, a trader who has amassed over 124,000 followers, shared a chart that illustrated the predictable downward spiral of the third-largest cryptocurrency.
The chart shows three key levels that led to the current ripple price plummet: $0.80, $0.50, and $0.30. All of these levels once served as durable supports. However, the bears were able to breach them all. More importantly, the cryptocurrency retested each level as resistance before the next leg down.
From the perspective of a technical analyst, ripple’s behavior is quite predictable.
Looking at the chart, it appears that the crypto token is done retesting $0.30 as resistance. Thus, it is very likely headed to the next support, which is at $0.19. That’s a nosedive of over 17 percent from the current XRP price.
Just because DonAlt identified $0.19 as the next support doesn’t mean that ripple would flip bullish once that level is hit. Keep in mind that the cryptocurrency is trapped in a strong downtrend. In technical analysis, “the trend is your friend” – until proven otherwise.
Thus, it is very likely that bottom-pickers will come out of hiding when XRP drops down to $0.19. This might ignite a relief rally that could send the crypto token to resistance of $0.30. However, since the cryptocurrency is in a downtrend, breaching $0.30 would be highly unlikely.
Therefore, the best-case scenario for the ripple price is that it range trades between $0.19 and $0.30. Based on DonAlt’s analysis, I wouldn’t bet on XRP becoming bullish unless buyers reclaim $0.30. Until then, it is a no-brainer that bears are in absolute control of the cryptocurrency.
Disclaimer: The above should not be considered trading advice from CCN.com. The writer owns ripple and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Last modified: November 23, 2019 5:34 PM UTC