XRP’s bear market is likely to continue as coin nears breach of descending triangle
A surface wave has been emerging in the XRP market, causing some turbulence in the price of the coin. XRP’s price plunged massively over the month of August and has established a strong ground in the $0.3000 and $0.2500 range. Despite several attempts to break away, the coin has been restricted within this range, with the bear lurking just around the corner.
At press time, XRP charts pointed to the emergence of a red candle, pushing the price down to $0.2574 with a market cap of $11.15 billion.
The 6-hour chart for XRP observed the formation of an ascending channel, with price contained between two upward rising parallel lines. The higher highs marked by the trend line were $0.2623, and $0.2687, while the higher lows were noted at $0.2452, and $0.2513. This continuous marking of swing lows and swing highs pointed to a potential fall soon.
The 50-day moving average stationed itself under the 100-day moving average – a bearish sign which was also affirmed by the MACD indicator. The indicator highlighted reduced bullish momentum and a crossover taking place where the MACD line would pull ahead of the signal line, announcing the return of the bears.
XRP’s 12-hour chart noted the emergence of a descending triangle. The triangle has been forming for the past 54 days, with the price of the coin gradually falling. As XRP’s price fell, one trend line bridged the lower highs at $0.3507, $0.3331, $0.3122, $0.2923, $0.2846, and $0.2692, and the second horizontal line connected a series of lows at $0.2494. With rising downward momentum a breakdown might be imminent.
The 50-day moving average rested under the 100-day moving average, revealing a bearish takeover, something which was confirmed by the Awesome Oscillator. Even though the indicator suggests a bullish market, the reduced momentum at press time could change this trend.
XRP’s price may take another hit from breaching the ascending channel and the descending triangle.