XRP’s buy market to end with breach of descending channel
XRP’s price had been suffering under the bearish realm, however, the coin received another blow on 24 November, when its price slipped under major support. The price of the coin dipped as low as $0.2006, after which the coin was on a recovery path. XRP’s price climbed by 10.33% and stood at $0.2216, at press time. The market cap of the third-largest crypto was $9.62 billion and the 24-hour trading volume was $10.73 billion.
Despite the fall, XRP formed a bullish pattern that might help to boost its price in the longer-term.
XRP price in the 4-hour was constricted within a descending channel, which is characterized by two downward sloping parallel lines. The trend lines marked the lower highs at $0.2844, $0.2653, and $0.2591 and lower lows at $0.2702, $0.2515, and $0.2425. The coin’s sudden fall on 24 November represented a fake breakout, but the price was noted to move within the channel. A breach from this channel could pull the crypto out of the extreme bearish end of the market.
The 50-moving average crossed over the 100-day moving average 16 days ago, causing the devaluation of the digital asset by 21.10%. The price dropped to $0.2191 from $0.2777. The change in orientation of the 50-day moving average was also indicative of an extremely bearish market.
The MACD indicator reported a negative yields market as the MACD line was dominated by the signal line. A potential crossover is possible, which would change the bearish nature of the market. The Relative Strength Index too indicated the reduced pressure, as it bounced back from the oversold zone. At press time, RSI suggested that the buying and the selling pressure of the coin had reached equilibrium.
XRP could be pulled out of the bearish trap as its price breaches out of the descending channel.