Published
4 years ago on
May 24, 2019
Ripple (XRP) is hanging by a thread as the price eyes a break below the descending triangle in the weeks ahead. XRP/USD has now faced repeated rejections at the 50 week moving average and it is more likely to go down than up. From a risk/reward standpoint, it is plausible to look for entries to sell here. The price might fall below the current support to settle around the next support at $0.147. However, the weekly chart shows that XRP/USD has yet to see the same level of correction as the rest of the market. Ripple (XRP) is still lagging behind in that respect and has yet to catch up with the rest of the market. This is because XRP/USD made a lot of independent movements during the bear market that put it behind the rest of the market in terms of correction.
Corrections happen sooner or later. This is the way of the market and the price might do whatever it wants short term but eventually it has to face the inevitable. The longer the price stalls a correction, the harder it is for overly enthusiastic investors. Unfortunately, the majority of Ripple (XRP) investors are more oblivious to risk/reward than investors in other large cap coins. If XRP/USD were to fall as we expect it to, Ripple (XRP) investors might have a very hard time coping with deep losses as most of them are already holding on to bags from prices near all-time high. This market has also seen a lot of whale activity recently because the whales love markets where investors are the most gullible. This penchant for risk taking has already landed most Ripple (XRP) investors in trouble but the dream of striking it rich as the price rallies 20x or 100x from here is what keeps them around.
The weekly chart for XRP/BTC shows that the price has been declining most weeks even since before the beginning of the year. Soon as the price declined below the 50 week moving average, it fell straight for ten weeks until it saw one week of upside. This broke the sequence but it hardly changed anything as XRP/BTC remains bearish as before. In fact, now that the price has declined to the horizontal support, it has increased the likelihood of a break to the downside.
The price tested this level as support back in 2017 and ended up breaking below it just before the last bull run. We are likely to see the same this time even though Ripple (XRP) might have more downside on the way instead of a bull run. The cryptocurrency market has a lot of problems brewing at the moment which have made it very clear that the market is not short of catalysts that could bring it down anytime now. Ripple (XRP) has problems of its own in addition to general problems of the market which makes it even more vulnerable and prone to heavy downside during the next decline.
