Ripple Price Downtrend Hits Another July Low Alongside Other Cryptocurrencies
- Ripple price barely holds above $0.6 as overhead pressure intensifies.
- A descending triangle pattern hints at the bearish leg extending to $0.46 in the near term.
The cryptocurrency market has continued to explore levels downhill as investors gradually hope for recovery. A massive dip on Wednesday saw the international money transfer token Ripple briefly dive under $0.6. Nonetheless, this pulldown was not unique to XRP because its peers probed the red waters as well.
Bitcoin failed to hold above $33,000, allowing the bearish leg to extend toward $30,000. The flagship cryptocurrency secured support at $31,600 before a minor recovery ensued. Ether tested the support at $1,850 but recovered to $2,000 ahead of the much-awaited Ethereum London hard fork.
Ripple Price Battles To Secure Higher Support
XRP trades at $0.61 at the time of writing. The uptick from the short-term support at $0.59 allowed bulls to reclaim the ground above $0.6. However, a massive seller congestion zone at the 50 Simple Moving Average (SMA) in the four-hour timeframe hindered the recovery.
Meanwhile, Ripple exchanges hands at $0.61 while seeking refuge above $0.6. Realize that another daily close under this short-term support could pull XRP significantly down as more sell orders will likely be triggered.
A bearish moving average cross has recently led to a death cross pattern in the exact four-hour timeframe. This technical formation usually points at the downtrend lasting longer and paves for consolidation at lower price levels.
If Ripple closes the day below $0.6, investors can prepare for the price to test $0.55 and $0.5 areas, respectively.
XRP/USD four-hour chart
A descending triangle adds credence to the bearish outlook and may lead to another massive breakdown. The pattern is regarded as highly bearish in technical analysis and often leads to a trend continuation.
As the two trend lines forming the descending triangle converge, Ripple goes through a consolidation period. However, the x-axis shows that buyers are still strong and present a formidable fight. On the upside, the lower high pattern reveals that sellers are getting aggressive.
XRP/USD four-hour chart
Traders must be on the lookout for a real break below the x-axis, which will signify the beginning of Ripple’s extending downtrend. Triangles have precise targets on breakout equal to the distance between the widest points, which explains Ripple’s potential 22% tumble to $0.46.