Once considered as the most liquid cryptocurrency, Ripple is now struggling to hold ground on a genuine upward breakout. The sellers are dragging XRPUSD down as soon as the price reaches a suitable level.
Other cryptos such as ETHUSD, USDTUSD are not showing as weak signs as Ripple. The trading volumes for Ripple are much lesser than the average quantity.
The cause of Ripple’s downfall
On April 30, XRPUSD formed a high of $0.236. After that significant rise, XRPUSD started declining steadily. Then it suffered a massive drop on May 10 and another one on June 3.
These drops made many risk-averse investors stay away from Ripple. Gradually several more investors moved towards Ethereum and Bitcoin. It caused a decrease in the number of investors who were earlier bullish on XRPUSD.
XRPUSD technical analysis and price prediction
The daily chart for XRPUSD shows a massive decrease in the traded volume for Ripple. It is nearly half of the amount a month back.
XRPUSD is below the 20-day Exponential Moving Average line of the Bollinger Bands. It will likely act as a dynamic resistance level now. The current price is also very close to the long time resistance level of $0.193.
The unexpected move that highlighted the weakness prevailing in XRPUSD was the decline after a genuine breakout. The four-hour timeline gave a clear ‘inverted head and shoulders’ formation yesterday. XRPUSD shot up and then broke the trendline.
The Bears quickly swooped in and erased all the gains. Ripple ended up falling lower than its previous levels. XRPUSD is now trading below the 20-period EMA in the shorter timeframes as well.
Most of the Moving Average indicators give a strong Bearish signal for Ripple, in the short as well as medium term.