Ripple Creeps Back to $0.4500 Amid The Widespread Cryptocurrency Retreat
June 27th, 2019
XRP/USD trading pair is currently navigating a rough sea of red following the rejection above $0.5000. The entire market is on retreat with Litecoin (LTC) and Bitcoin Gold (BTG) leading with losses of 2.81% and 2.66% respectively. The major digital assets like Bitcoin and Ethereum are trimming the gains from the new yearly highs. Bitcoin, for instance, back under $13,000 although it formed a high around $13,353.
XRP/USD 4-h chart
Ripple, on the other hand, is down a subtle 0.95% on the day after correcting from an intraday high around $0.4656 to the current $0.4551. The bulls are fighting to keep the price above the 50% Fib retracement level with the last swing high at $0.5337 to a swing low of $0.3651. Prior to the current declines that have broken the trend above the ascending trendline, XRP/USD had been forming a higher high and a higher low pattern from June lows around $0.3650.
The reversal from June lows initially broke above the 100 Simple Moving Average (SMA). XRP/USD then embarked on the mission of breaking barriers where it broke the stubborn resistance at $0.4800 giving the price momentum to step above $0.5000 for the first time in 2019. A new yearly high was from at the swing high ($0.5337).
The lack of buying pressure to propel XRP towards $0.6000 levels culminated in a reversal that is giving the buyers a hard time to contain above the 50% Fibo.
Technically, the bears are in control at press time. The RSI has broken below the trendline that was connecting the lower points of the indicator. If the RSI continues with this sharp drop, XRP could break down further and test the support at $0.4000 close to the 23.6% Fibo. June lows around $0.3650 will function as the major support preventing losses towards $0.3000.
XRP Key Technical Levels
Key Resistance: $0.5337
Key Support: $0.4000 and $0.3650.
MACD: Increasing divergence south hints increasing selling pressure.
RSI: Drop towards oversold levels risks XRP breakdown towards $0.4000.