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Ripple (XRP) Price Analysis – Bear Market With No Immediate Upside in Sight

...with the May 20th bearish crossover further dampening market sentiment

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XRP Is Down 83% YTD

If you got into Ripple’s XRP towards the beginning of the year, you’re probably not happy with the cryptocurrency’s movement. From a high of $3.75 on January 4, the crypto is down to a $0.63 / XRP price currently; an 83% slide in just about 5 months. 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 (and few who may have entered during the sharp downswing in early April) are the ones with their investment in the green. The other are either eagerly watching out for bull signals or looking for valid exit points.

Technical Indicators Reveal No Positive 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-trend since the beginning of the year, with just two bullish swings witnessed in between; albeit neither strong enough to alter the trend.

We saw XRP breaking a key support level of $1.15 on February 1st. The level now lies converted into a key resistance level for XRP. An immediate resistance level for the asset presently can be seen at about $0.9. However, price movements for the XRP seem more in the mood to play with the support lines; at $0.62 and $0.45 (immediate and key, respectively).

The May 20th Bearish Crossover

The 14D SMA (14-day simple moving average) has recently crossed the 50D SMA from above, forming a bearish crossover on May 20th. This has further dampened market sentiment 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 below 35 index level, some way short of the neutral 50.

Verdict

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 consider the $0.62 and the $0.45 levels as key support levels, where the asset is likely to witness rebounds in the current downtrend.

Image Credit: Deposit Photos

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