XRP price finally broke out of range on Wednesday, and with it broke investors’ hearts as it headed south. After almost three weeks of sideways trading, the bears finally had the final say. At the time of writing, the XRP was marginally up by 1.99%. This came following Wednesday’s losses of 10.1% saw it cross below the $1.00 mark.
The risk of a falling XRP amid a booming crypto market
After failing to take advantage of the recent crypto market rally to trend upwards, XRP seems to have driven investors to other assets. Its poor show couldn’t have come at a worse time, as investors have many alternatives to choose from, given the current crypto boom. Cryptocurrency investors are known to be notorious ”hodlers” who easily switch assets if better opportunities present themselves. This could spell trouble for XRP in the near term
Technical analysis for XRP price
After spending the better part of October trading in a range, XRP price pattern has broken out towards the lower side. This signals a high probability of a downtrend in the near term. The market momentum has weakened substantially over the past 48 hours. During that time, the RSI has declined from 50 to 38. However, at the time of writing, it had climbed back to 41. The bearish sentiment is also supported be the 20-EMA crossover of the 10 EMA.
The formation of the long wick on yesterday’s candlestick signals that the market could be rejecting lower prices. However, it is also possible that it signals a false breakout. Therefore, you may want to wait for a confirmation by the second and third candles. However, if bearishness continues, the second support is likely to come at $0.9438, while the first one will be around the psychological support at $1.001.
On the other hand, the RSI momentum indicator has just shown an uptick. This could be a signal that the bulls are trying to keep the price above the $1.0000 psychological support level. If they sustain the upward pressure, the XRP/USD pair is likely to encounter the first resistance at $1.0648 and the second one at $1.1036.
