Ripple’s (XRP) price encountered massive selling strength after the remittance token lost its temporary support near the $0.75 mark. As fear dominates the overall crypto space, XRP will likely face downtrends in the up-and-coming sessions. The market Fear & Greed Index stood at 18/100, suggesting extreme fear that keeps market players worried.
XRP Might Retest Levels at $0.6838
Ripple price exchanges hands around $0.7459. The downbeat mood had the cross-border transaction token staying 31% lower than its 23 December high of $1.0750. The token’s downside price movements have printed descending channels on the daily chart, following many lower lows and lower highs.
The parallel channel highlights bearishness for the alt, and maintaining inside the pattern can mean further drops for XRP. That way, Ripple has to keep the nearest support zone by the channel’s middle border at $0.7459 to prevent crashing towards the prevailing channel’s bottom boundary at $0.6838. Such a move will translate to an 8.87% fall beneath XRP’s current price.
XRP/USD 24Hr Chart
Keep in mind that the current negative sentiment in the overall market validates XRP’s bearish narrative. The crypto space has bled since the sudden crash on 5 January 2021. While publishing this content, the global crypto market capitalization slipped beneath the $2 trillion level (Coinmarketcap data).
Furthermore, the Relative Strength Index’s position at 32.98 and downward-sloping MAs validate the bearish case in XRP. Remember, the bearish strength will receive a boost the moment RSI dips into the oversold territory.
The downside move by the Moving Average Convergence Divergence and its position under the zero line within the negative area supports the pessimistic narrative in Ripple. As vital price indicators point to the downside, XRP’s road will fewer obstacles is the plunging one.
Nevertheless, XRP bulls can invalidate the bearish forecast for XRP price by keeping the closest support barrier at $0.74596. Remember, the descending channel’s middle border embraces this floor. If such a case plays out, XRP might rise past the psychological area at $0.80, tagging the channel’s upper boundary around $0.8096. Nevertheless, Ripple’s price movements might rely on upcoming actions in the overall crypto spectrum.
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