Ripple XRP Looking Down, as Chinese Crypto War Intensifies

Ripple Coin XRP crashed in May, after surging during the first few months of this year, increasing from $0.20 at the end of 2020, to almost $2 by the middle of May. It showed the first bearish signs in April, when it reversed down, falling below $1, but the buyers returned, although they couldn’t resume the bullish trend properly, with May highs coming in at around $1.76, while other cryptos made new highs that month.

The XRP/USD found support at the 100 daily SMA (green) for some time, but that moving average couldn’t hold the crash that came after China openly began waging war on cryptocurrencies. The 50 SMA (yellow) and the 100 SMA were broken on the daily chart, and the Ripple coin fell to $0.65.

The 20 SMA keeps pushing Ripple coin down

We saw a bounce off that level after the first crash, but the 20 daily SMA (gray) turned into resistance, and it pushed this digital coin down. In June, the second crash came, and it pushed the price below the 200 daily SMA (purple). Ripple has tried to make a bullish reversal, but the 20 SMA is not letting go, and it is now also keeping Ripple below the 200 SMA on the daily chart.

Ripple Live Chart

XRP/USD

On the H4 chart below, moving averages are keeping Ripple coin down as well, particularly the 100 SMA (green). This moving average turned into resistance early in June and it continues to push the highs lower after every attempt to reverse the price higher. This is very discouraging for Ripple buyers, although sellers should be showing some nice profit now.

The volatility has declined considerably in recent weeks, but the sentiment remains quite bearish in Ripple – even more so than in other cryptocurrencies. China continues the war on cryptos, having banned more Bitcoin mining in the country, which is keeping the sentiment bearish across the market. According to the investment platform Uphold, this comes despite Ripple overtaking Bitcoin in terms of the transaction volume in the UK.

MAs are keeping Ripple down on the H4 chart too

UK transaction volumes across all cryptos jumped 16-fold during the first three months of 2021. However, the most interesting twist in the data reveals that XRP’s transacted volume is at least eight times that of Bitcoin. But, at the moment, Ripple is looking down and can’t raise its head above water, as the legal battle with the SEC continues. So, it will take a shift for Ripple to get back to previous highs.