Ripple (XRP) Price Analysis – XRP May Remain Weak If Channel Pattern Keeps Shaping

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4 December 2019 | Updated: 4 December 2019

XRP has witnessed about -30% losses over the past weeks of trading. In fact, the bearish scenario could even become uglier if the supply remains heavy. At the moment, Ripple’s XRP trades at $0.212 after seeing an overnight loss of -2.66%. We can expect more bearish pressure if the sellers remain in the market.

Ripple (XRP) Price Analysis: 4H Chart – Bearish

Key resistance levels: $0.22, $0.23
Key support levels: $0.20, $0.19

XRP is on five weeks bearish swing with a new bearish setup, which is likely to send the price to $0.20, although there’s near support at $0.21. Looking at the RSI indicator, we can see that XRP price is currently testing the oversold level. Driving beneath this level might lead to a heavy sell-off. The MACD is also in the negative zone, suggesting a weakening momentum.

XRPUSD, 4H Chart – December 4

In the opposite direction, XRP may retest the yellow regression line at $0.22 resistance if the buyers regroup. A clear cross above this yellow would confirm a bullish swing as $0.23 may come to play. As it stands now, XRP is under a lot of bearish pressure on the 4-hours chart as more can be expected as long as the sellers remain in the market.

XRPUSD, Hourly Chart – December 4

Ripple (XRP) Price Analysis: Hourly Chart – Bearish

For the past five days now, Ripple’s XRP is trading inside a descending channel on the hourly chart. The bearish formation has now reached the channel’s lower boundary which means a bounce could be underway. While waiting, the key resistance to watch out for is $0.22.

As we can see, the last 24-hours drop has led the RSI into the oversold region but a small recovery is likely. The MACD is also in the negative zone with no sign of recovery at the moment. If XRP fails to respect the channel pattern, a price explosion could occur to the downside as near support lies at $0.21. Though, the $0.20 may be revisited if selling pressure is intense.

XRP BUY SIGNAL

Buy Entry: $0.212
TP: $0.22
SL: $0.209

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Michael Fasogbon

Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.