Things are not looking good for XRP as its price has failed to reclaim a significant resistance level and seems likely to drop lower. The market is currently struggling to remain in a range, and it could initiate the next bearish leg down.
By: Edris
On the daily timeframe, the price has failed to reach the $0.43 area again, as the bullish rebound is seemingly coming to an end.
The 50-day moving average is currently acting as a critical resistance level around the $0.37 mark, preventing the price from rising further.
The mentioned moving average has also recently crossed the 200-day one to the downside, often interpreted as a bearish signal. The market structure is hinting at a drop to the $0.3 level in the short term, which could be the bulls’ last resort to stop the cryptocurrency from dropping to a new lower low.
Looking at the 4-hour chart, a classic break and retest are forming, as the price has broken the $0.37 level to the downside and has retested it.
The mentioned level is rejecting the price to the downside convincingly. The RSI indicator, which suggested a likely rejection with an overbought and bearish divergence signal while the price was testing $0.37, is currently trending around the 50 mark.
A break below it would likely signal the beginning of another decline which could lead to a drop toward the $0.3 support level in the short term.
