Ripple Price Analysis: Further Disaster Awaits XRP As It Charts Bearish Cross
Daily Ripple XRP Price Forecast
- The 50-day and 20-day SMA have charted a bearish cross pattern.
- The price has previously found healthy support at the $0.256 support wall.
Ripple has been in the middle of a catastrophic downfall after news broke about the SEC lawsuit. The sellers have been in control of the market for four straight days. XRP is currently priced at $0.28.
Ripple To Retest $0.256 Support Barrier
XRP sank from $0.585 to $0.256 between December 19 to December 23 before finding healthy support. The buyers tried to change the overall narrative by pushing the price up to $0.34. However, the bears managed to take back control and drop the price t0 $0.28 over the last three days. In the process, the bears have managed to flip the 200-day SMA from support to resistance.
Image: XRP/USD daily
The 50-day SMA has crossed over the 20-day SMA to form the bearish cross pattern. This indicates that the sellers are likely going to retest the $0.256 support line. This is a very critical juncture as breaking below this level could be catastrophic as the next healthy support lies all the way down at the $0.173 line.
The relative strength index is crawling along horizontally at the edge of the overbought zone. So, while the price may fall a bit more, a bullish recovery could be on the cards.
Image: XRP/USD 4-hou
When we look at the 4-hour chart, we can see that the market momentum is still slightly bullish. The buyers can solidify this signal by flipping the 20-bar SMA from resistance to support.
XRP Loses Support From Four Platforms
Four cryptocurrency platforms have suspended support for XRP in light of the upcoming lawsuit against Ripple by the US Securities and Exchange Commission (SEC). Bitstamp, OSL, Beaxy Exchange, and CrossTower recently changed their policies towards XRP.
While Bitstamp has suspended trading and deposits for US customers, Beaxy and OSL have indefinitely suspended trading. CrossTower said it had removed XRP from its US trading platform entirely at the moment, as per a Daily Hodl report. Users of all these exchanges are still reportedly able to withdraw their XRP.
A Forbes report cited a Coinbase spokesperson who said that the exchange is “considering its options” in the face of Ripple’s legal issues. Many high-profile digital asset analysts are also wary of Ripple’s native token. Scott Melker, also known as The Wolf of All Streets, took to Twitter to note that purchasing XRP now is a risky proposition.
Analyst Michaël van de Poppe also warned his YouTube viewers that investing in XRP at this time is not ideal.
Given that we’ve gotten this low in basically one daily candle and given that there is the lawsuit from the SEC… I would definitely not go in for such a risky approach at this point especially given that there are so many altcoins right now at a very interesting level that give way more potential than XRP.
Ripple Key Price Levels To Watch For XRP
The $0.256 support barrier is a critical price level to watch for the cross-border remittance token. If the price of Ripple breaks below that, then XRP will test the $0.17 support line.
On the upside, the bulls have to conquer the 200-day SMA ($0.296) and the 20-bar SMA in the 4-hour chart ($0.31) to continue its upward march.