Ripple (XRP) Is On The Verge Of A Steep Decline Against Bitcoin (BTC)

Ripple (XRP) appeared to have escaped its correction against Bitcoin (BTC) for a while but that situation has changed completely in the last few days. Since the beginning of this month, Ripple (XRP) has been showing signs of weakness trading against Bitcoin (BTC). The 4H chart for XRP/BTC shows that Ripple (XRP) is now trading in a descending triangle against Bitcoin (BTC). This triangle has a strong probability of breaking to the downside. RSI for XRP/BTC is already in overbought territory and has room for further downside. The price action looks very vulnerable and as soon as XRP/BTC falls below the 21 EMA, it is likely to decline aggressively.

In addition to the 21 EMA, Ripple (XRP) has now fallen below the 200 MA on the 4H chart which means there is plenty of room to go down. As the rest of the market prepares to recover against Bitcoin (BTC), Ripple (XRP) might be expected to go through a correction for the next few weeks. That being said, Ripple (XRP) has been known to be unpredictable especially when it comes to making independent moves in a falling market. The RSI might be in overbought territory but that does not mean the price has to fall in the near future. However, as long as the price remains below both the 21 EMA and 200 MA, it is going to be very difficult for the price to recover.

Ripple (XRP) has held its ground against the US Dollar (USD) these past few days. The price has defended against a fall below $0.20. A lot of speculators have been eyeing $0.18 as potential level for a reversal but so far the price has not descended to that level. The number of shorts for XRP is also on a steady rise and the sentiment right now is overly bearish. That being said, long term XRP hodlers are buying the dips as usual even if the price continues to fall further. This explains why Ripple (XRP) is doing better than most other coins at the moment. The daily chart for XRP/USD shows the price trading in a falling wedge. There is room for a decline to $0.18 but chances are a fall below $0.20 will be a quick one leading to a quick recovery.

There are a lot of buy orders around $0.18 on major exchanges and the price is unlikely to stay around that level for long. RSI on the daily time frame is also under oversold conditions and is due for a correction to the upside. That being said, it can still drop further towards the end of the week to pave way for one final wave down before the recovery can begin. Ripple (XRP) is currently up more than 2% for the day but it has run into the 5 Day EMA and has already faced a strong rejection. The price is unlikely to hold at current levels for long and is soon going to head lower towards a new yearly low along with the rest of the market.