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Ripple (XRP) Could Witness a Huge Dump Off if This Vital Resistance Holds.

November 11, 2020

Talking Points:

XRP struggles with the resistance at the 100-day simple moving average (SMA) after failing to break the obstacle at 0.27 USD.

XRP/USD could restart the downward trend to 0.26 USD as an ascending triangle pattern emerges.

XRP price seems to have slowed down after breaking the resistance at 0.26 USD. An attempt to drive the token towards 0.30 USD hit a huge barrier below 0.27 USD. Instead, the token retreated below 0.26 USD. At the time of publishing, XRP/USD is hovering around 0.256 USD midst a growing bearish outlook.

XRP’s short-term upswing is capped by the 100 SMA in the daily zone. A rising triangle pattern also limits the price movement. The longer XRP remains below these two obstacles, the firmer the bearish hold becomes.

It is vital to understand that rising triangles are interpreted as a continuation pattern in technical analysis. A breakout can happen either up or down; however, the price tends to follow the trend following the consolidation. In this situation, XRP is probably going to break down towards the support highlighted at 0.22 USD.

XRP/USD Daily Chart:

The 50-day SMA is likely to take some of the selling pressure. Other key support levels to keep an eye on are the 0.24 USD level and the 200 SMA, currently holding firm at 0.231 USD.

Currently, the Relative Strength Index (RSI) implies that the price is still mainly in the hands of the bulls until a breakout downward is confirmed, maybe with a daily close below the 50 SMA. On the other hand, a recovery will come into play if XRP can retake the position over 0.26 USD. A price move over 0.27 USD will probably encourage more buy orders as XRP bulls plan their attack to break the resistance at 0.3 USD.

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