The price of XRP soars in the charts in December 2020. This follows the SEC’s complaint against Ripple and its executives. Subsequently, many US-based exchanges deregistered or suspended XRP.
However, the value of the digital asset is seeing some respite, with Bitcoin’s rally in the market. The value of XRP drops to $ 0.1686. After which, it reached a price point above 0.2 USD. At the time of writing this article, XRP was trading at $ 0.2804.
XRP Daily Chart
Source: XRPUSD on TradingView
The daily XRP chart notes the sharp rise that followed the fall of XRP in the charts. Since then, the price of the cryptocurrency has been tightening in a descending triangle, support at the price level of $ 0.2656. However, a bearish breakout often follows this trend of a bearish breakout.
The market is taking shape for another fall. Holders of the cryptocurrency can sell the digital asset short.
Reasoning
The downtrend that is forming in the XRP market was an indicator of the selling pressure on the XRP price charts. In fact, the moving average of 50 broke through price bars after the drop seen in December.
On the contrary, the relative strength index fell into the oversold zone when the price collapsed. It then returns to the equilibrium zone. However, this is questionable since the selling pressure has increased. Despite the fact that the RSI notes that a gradual decline.
Adding to the market decline, the market also seemed to be losing momentum. The pressure to sell contributes to the decline in AO in the negatives. The short bars on the histogram highlighted the weak market momentum.
Important levels to watch out for
Admission: $ 0.2654
Stop-Loss: $ 0.3095
Take-Profit: $ 0.1986
Risk-reward: 1.51
Conclusion
The XRP market sees the downside take over. With signs of a selloff becoming evident, traders may enter as low as $ 0.2654. They can make profits at $ 0.1986. What could be seen as another brief support for XRP.
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