- XRP/USD refreshed the lows below $0.3000 and formed a new April low at $0.2920.
- XRP/USD has lost 25% of its value from the April 2019 highs.
- XRP expected to stay in a narrow range between $0.2922 (April lows) and $0.3100 (resistance).
Ripple has paid the price in the ongoing crypto selloff. While other major cryptocurrencies have had a controlled breakdown, XRP/USD plunged massively yesterday dumping more than 7% of its value. The digital asset refreshed the lows below $0.3000 and formed a new April low at $0.2920. In fact, the data on CoinMarketCap shows Ripple trading lower 6.05% in the last 24 hours, besides, the selloff wiped off $400 million of the daily trading volume and $1 billion of the market cap.
XRP/USD 1-hour chart
A look at the 1-hour XRP/USD chart, we can see that Ripple buyers broke the strong support at $0.3000 during the recent slump. However, there was a bounce from the lows traded at $0.2922 where the price stepped above $0.3000. Another indicator of the downtrend is the descending channel that has been forming since the beginning of April. Similarly, XRP/USD has lost 25% of its value from the April 2019 highs.
Ripple short-term outlook
There is no indication of a significant trend reversal at the momentum, neither does the short-term outlook look positive. The moving average convergence divergence (MACD) is still struggling with the bear pressure in the negative zone. This comes after the indicator hit highs above +0.001 in the first week of April.
Moreover, the relative strength index (RSI) having retracted from the overbought region is now horizontal at 40. This means that Ripple does not have the strength to move either up or down amid the prevailing market indecision. Meanwhile, traders can expect XRP to stay in a narrow range between $0.2922 (April lows) and $0.3100 (resistance). More importantly, the price is going to be pivotal at $0.3000 in the coming sessions on Thursday 25.
Ripple Key Technical Indicators:
200 EMA 1-hour: Trending above the price at $0.3233.
MACD 1-hour: -0.003095 (Battling bear pressure towards the positive region).
RSI 1-hour: 40.00 (ranging to confirm the market indecision).
Support 1: $0.2922
Support 2: $0.2800
Resistance 1: $0.3100
Resistance 2: $0.3200
Prediction: Ripple likely to enter into a consolidation phase awaiting an upside breakout in a few weeks.
1- Do not invest in every ICO – most of them are a scam.
2- Crypto is a heavily manipulated commodity and the price can change at any moment.
3- The creation cost of a coin represents the “wholesale” price – It is always better to buy when the price is close to the creation cost.
4- Crypto has a natural cash flow that dictates the selling pressure. Like, 1800 bitcoins are mine each day so 1800 bitcoin must be bought at the current price (“means market needs new $18 millions of investment every day if the price is $10,000 to maintain the current price“).
5- Patience and timing are key to making a profit:
Buy, when the price is close to the creation cost.
Sell, when the price is way high off the creation cost.