Ripple Price Analysis: XRP On The Verge Of Getting Oversold

Daily Ripple XRP Technical Analysis

Last Updated July 23rd 2021
2 Min Read
  • The relative strength index (RSI) is on the verge of entering the oversold zone
  • The Ripple price has flashed multiple sell signals in the 4-hour chart.
  • The Ripple price encountered resistance at the confluence of the 20-day and 200-day SMAs. The former has crossed below the 200-day SMA to form a bearish cross. Since then, XRP has dropped from $0.705 to $0.56.

    Ripple Price Could Drop For Two More Days

    The Ripple price could drop for two more sessions, as per the TD sequential detector before flashing the red-nine candlestick. The relative strength index (RSI) is on the verge of entering the oversold territory.

    Image: XRP/USD daily

    XRP/USD daily chart 072021

    In the 4-hour time frame, the Ripple Price has flashed two bearish signals:

    • The MACD shows increasing bearish market momentum.
    • The parabolic SAR has flipped from positive to negative.

    Image: XRP/USD 4-hour

    XRP/USD 4-hour chart 072021

    What Can The ‘Death Cross’ Do To The Ripple Price?

    Despite its small victories in the ongoing Ripple-SEC lawsuit, recent data shows the Ripple price 50-day moving average is about to fall below the 200-day moving average, a pattern known as the "death cross," suggesting further XRP price pain could be on the way. 

    New York District Court Judge Sarah Netburn earlier ruled that former SEC director of corporation finance Bill Hinman can be questioned by Ripple, whose court appearance is now scheduled for July 27.

    According to the report, Judge Netburn said that "not a run-of-the-mill SEC enforcement case." She added that Hinman’s deposition wouldn’t "open the flood gates" on government officials who have spoken on laws, regulations, or policies as the SEC had claimed when it sought to block Hinman's testimony. She added that the case "involves significant policy decisions in our markets, the amount in controversy is substantial and the public’s interest, in this case, is significant." 

    Meanwhile, Ripple's XRP is up around 160% since the beginning of the year. Its recent downward trading pattern, set to produce the first XRP "death cross" in five months, is broadly regarded as a bear market signal although some consider it a lagging indicator.

    Bitcoin saw a death cross trading pattern in June and did not fall further as a result, but failed to make up any ground after a sell-off in May. When Bitcoin saw a death cross trading pattern in March 2020, it heralded a huge Bitcoin bull run that helped even smaller cryptocurrencies surge to all-time highs.

    Ripple Price Is Expected To Reach These Levels

    The Ripple price will drop to the $0.54 support wall. The buyers should take back control and bounce XRP up to the 20-day SMA ($0.63).