- Ripple is facing further declines if the bearish flag pattern support is pierced.
- The technical picture remains strongly negative; the path of the least resistance is downwards.
Ripple is pushing itself out of the rabbit it crypt into a couple of days ago. XRP came from testing levels marginally above $0.32 to refreshing the lows under $0.22 in less than a week. Last week’s correction above $0.32 was mainly fueled by a bullish wave affecting the altcoins including Ethereum, Bitcoin Cash and Litecoin. However, the devastating drop came as a result of the flash drop in Bitcoin price to levels close to $8,000.
At moment Ripple’s recovery has hit the absolute ceiling at $0.25. Also providing resistance o gains at the same level is the 50 simple moving average (SMA) on the hourly chart. The price is giving way to declines while at risk of breaking down further below the bullish flag pattern. Such a drop would refresh endanger the short-term support at $0.23 and even refresh the lows around $0.22.
Unfortunately, the technical picture is bearish inclined. The relative strength index is pointing south after hitting a snag at 56.41. The moving average convergence divergence is stuck under the zero line and likely to encourage a negative divergence. Moreover, the gap between the 100 SMA and the 50 SMA is still widening as a result of rising selling activities.