Analyst Gives 3 Reasons Why XRP Price May Fall 35% | NewsBTC


Ripple blockchain’s native token XRP is up more than 25 percent so far into 2020. Nevertheless, the fourth-largest cryptocurrency is still looking to pare those gains, according to a string of bearish indicators brought forward by a TradingView.com analyst.

The US-based chartist pitted XRP/USD against three technically bearish setups. They included a long-term Moving Average wave, a Bearish Divergence between price and momentum, and a ‘death cross.’ Together, all three suggesting an extended dive towards $0.15, a classic support level situated 35 percent below the current rate.

How To Get Free Crypto  

Ripple chart shows XRP/USD in a large downtrend move. Source: TradingView.com

Ripple chart shows XRP/USD in a large downtrend move. Source: TradingView.com

Price-Momentum Conflict

At first, the TradingView analyst highlighted a trail of lower highs and higher lows that XRP/USD has been leaving behind since 2018. The pair lately broke above the downward channel (in blue), but a strong upside rejection near the 200-week moving average curve threatened to push it back inside the range.

14 BTC & 95,000 Free Spins for every player, only in mBitcasino’s Exotic Crypto Paradise! Play Now!

“You can see that price first fell below 200-WMA (in purple) in the summer of 2019,” the analyst explained. “XRP has consistently failed to rally back above the 200-WMA. It has been rejected there on the past three major attempts.”

He combined the XRP downtrend–especially the recent bearish wave–with its otherwise improving Relative Strength Index (RSI). The indicator reflects the strength or weakness of an asset, based on the closing prices of a recent trading period. The XRP’s weekly RSI grew higher–a sign of higher buying momentum–despite its spot rate trending lower.

“That’s a bearish divergence that could lead to weakness in the coming weeks,” the analyst said. “Although, there has already been a breakdown of the divergence on the RSI.”

XRP Death Cross

XRP was also trading downwards under the influence of a ‘Death Cross.’ It is a bearish indicator that comes into view after an asset’s long-term moving average closes above its short-term moving average. In the case of XRP, its weekly 200-WMA (purple) leaped over its 50-WMA (blue) back in January 2020, creating a so-called bearish crossover.

XRP/USD’s 200-WMA jumped above its 50-WMA. Source: TradingView.com

XRP/USD's 200-WMA jumped above its 50-WMA. Source: TradingView.com

“It is a sign of prolonged weakness,” the analyst noted.

Apart from these three reasons, lower trading volume and volatility also left XRP’s latest upside move in a doubtful stage. The token attracted fewer traders over the last two years. That may have to do with an ongoing class-action lawsuit against its parent company, Ripple Labs, over whether or not XRP is security.

Coinbase Banner  

The San Francisco-based blockchain startup has reported its lowest quarterly sales in Q1 2020, selling just $1.75 million worth of XRP.

Go to Source
Author: Yashu Gola


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.