Ripple (XRP) The price dropped below the psychological level of $1 on November 26. This drop was seen as a buying opportunity for XRP investors. However, the uptrend that followed this downtrend ‘hit the wall’ and was stopped by the upper boundary of the descending parallel channel. This chart pattern continues to rule XRP’s price action pointing to further losses.
If bears dominate the Ripple (XRP) chart, it could trigger a 14% drop, bringing the price as low as 0.8405. XRP price dropped below the psychological level of $1 on November 26, paving the way for greater losses. Although he tried to recoup losses in the ‘four straight bullish’ sessions between 27 and 30 November, his efforts were insufficient and he was unable to break the resistance from the upper boundary of the governing chart pattern.
XRP price is trading around $0.9787 at the upper border of the descending parallel channel as seen on the daily chart. A descending parallel channel is a chart pattern that represents a significantly bearish trend that continues as long as an asset’s price stays within the bounds of the descending channel.
If ripple price fails to climb above the falling channel, it could decline towards the middle border of the channel at $0.9094. Another drop beyond this level could trigger a drop for XRP/USD to tag the bottom of the channel at $0.8425, which is a 14% drop from the current price.
The downward sloping moving averages and the position of the Relative Strength Index (RSI) indicator at 38.97 near the oversold zone underscore this bearish outlook that Ripple is firmly in the hands of the bears.
XRP/USD Daily Chart
On the upside, the bearish thesis may be invalidated if XRP price can break the immediate resistance of $0.9844, which is met by the upper border of the management channel. If this scenario happens, XRP price could potentially retrace losses that started on Nov. 8 by breaking to regain the $1.00 level.
A move higher could take Ripple to the $1.09 level, where the 50 and 100-day SMAs overlap.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.