Ripple’s recent price action has been particularly rough following a convincing rejection from a key resistance level. The cryptocurrency is currently dropping toward the bulls’ last resort as risk assets stumble.
By: Edris
On the daily chart, the price has failed to move back above the significant $0.43 resistance level and is currently falling rapidly.
The 50-day and 200-day moving average lines, which also provided additional resistance around the $0.43 level, are now on the verge of a bearish cross, as the former is seemingly bound to drop below the latter soon.
All signs are pointing to a potential retest of the $0.3 support level, which could be the last hope for a bullish turnaround.
However, if the above-mentioned support level also crumbles, a further crash could be expected in the short term.
The large bearish flag was broken to the downside earlier, and the price has been declining as a result.
From a classical price action standpoint, a retest of the $0.3 support level looks imminent. However, the RSI indicator is currently showcasing a clear bullish divergence in this timeframe. This could hint at a probable pullback toward the lower trendline of the pattern in the short term.
Whether this pullback occurs or not remains to be seen, but the bearish momentum and the overall market structure both increase the likelihood of a drop-down to the $0.3 level in the near future.
