XRP’s price has been struggling to break back above the significant resistance level following the massive FTX market crash. The current outlook for the crypto asset has become negative, as bearish sentiment has been dominating the market once again.
By: Edris
On the daily timeframe, the price has dropped below the 50-day and 200-day moving average lines, as well as the $0.43 level, and has failed to recover since.
The 200-day moving average near the $0.4 mark has constantly been rejecting the price to the downside in recent weeks, and the price could retest the $0.3 support level in the near future.
On the other hand, if the 200-day moving average finally gets broken to the upside, the $0.43 resistance level and the 50-day moving average located around $0.45 would be the next strong obstacles.
However, considering the current bearish market structure, a decline toward $0.3 seems more likely.
Looking at the 4-hour chart, it is evident that the market is currently in a consolidation phase between the $0.43 and $0.3 levels.
A symmetrical triangle pattern has also developed over the last couple of weeks, and the price is yet to break to either side. These patterns could act as both reversal and continuation patterns, and the eventual direction of the market would depend on which side the price breaks out from.
The RSI indicator has also recovered from a nearly oversold state and is currently approaching the 50% mark, pointing to a momentum equilibrium. Yet, as emphasized in the last section, a bearish continuation seems more likely considering the overall market structure and the macro market conditions.
