So Far, Not So Good!
While 2017 ended with a blast, 2018 hasn’t been as benevolent a year to Ripple (XRP) – yet. The past month alone has seen XRP’s market cap drop by over 5 billion (coinmarketcap data). Looking at price, Ripple (XRP) is down from highs of $3.84 recorded on January 4th, 2018, to $0.54 (as on June 19th, 5:30 UTC); a dive of about 86% since the beginning of the year. The figure hits harder when you compare it to the meteoric 850% price rise (in dollar terms) that XRP saw in December alone. For now, those who entered their XRP positions before mid-December when Ripple traded below the $0.30/XRP price level, are primarily the ones with their investment in the green. The others are now either eagerly watching out for bull signals or looking for valid exit points. From a technical perspective, Ripple’s price analysis reveals no immediate upside as of now.
Ripple Price Analysis: Range-Bound With No Immediate Upside
Technical analysis on the price of the Ripple asset XRP (traded for the US dollar) doesn’t show any positive reversal in sight, either. XRP has been following a bearish medium-term trend since the beginning of the year, with just two bullish swings witnessed in between; albeit neither being strong enough to buck the trend.
We saw XRP breaking a key support level of $1.17 on February 1st. The level now lies converted into a key resistance level for XRP. XRP also broke past its immediate support level of $0.92 on March 6th which now lies converted into its immediate resistance level. With the key support level of $0.46 in sight, price movements for the XRP have largely remained range-bound between the $0.92 and the $0.46 price levels since the beginning of March.
The May 20th Bearish Crossover
The 14D SMA (14-day simple moving average) crossed the 50D SMA from above, forming a bearish crossover on May 20th. Both the 14D SMA and the 50D SMA are directionally downward sloping at this point in time, indicating damp market sentiments with respect to the Ripple asset. Moreover, strength in the movement of XRP’s price is also weak at the moment, as indicated by the RSI (relative strength index) at a 38 index level, well short of the neutral 50 index level.
There is no immediate upside in sight for the XRP for now. Bargain hunters who believe in a more positive picture for XRP developing over a longer term can watch the $0.46 price level to provide support to the Ripple’s downslide. This is where the asset is likely to witness a rebound in its current downtrend.
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