After the big rise in the crypto market in 2017, Ripple has not stopped falling, eliminating 95% of all those gains. This has caused XRP to be in a strong downward trend for the last 2 years. But could this change soon? Here’s our answer with a technical analysis.
XRP Long Term Trend
It’s always good to have a view of the whole picture, even if we only want to take advantage of small movements.
Even Ripple’s performance throughout its history is truly impressive, giving returns of over 2,900% for early adopters who still hold their position.
The historical uptrend is clear, and what we see today as a big drop may be nothing more than a huge setback before the search for new highs.
Recently, the price visited and rejected an important support zone, the same one where the last bullish momentum of 2017 started.
This support can be categorized as the base of a large downward triangle, which should be taken as a strong downward signal, in case the figure’s support is breached.
However, it is even more likely that the figure that was formed is positive, as it can also be catalogued as a bullish flag, which would be confirmed only if the descending line is effectively crossed. This interpretation is due to the fact that the previous force is enormously greater than the downward intention seen during the last 2 and a half years.
Ripple prints one billion XRP
As a result of the constant fall in the price of Ripple in recent years, the medium-term trend is clearly downward. And despite continuous attempts to break it, today we see again a downward path of less resistance.
The 8-week EMA and 18-week SMA moving averages are crossed upwards, but about to turn to the downward side, as a result of the constant breaking of supports.
At the moment, the odds are in favor of a drop towards the $0.1350 support zone.
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Finally, we review the daily candlestick chart, to observe the XRP trend that will be moving to the price in the next hours and days.
With the recent losses, there has been a clear downward trend, with the products reaching ever lower highs and lows.
The EMA 8 and SMA 18 moving averages are crossed downwards supporting this trend, and working as dynamic resistances.
The 200-day SMA is also currently bearish.
The constant breakout of support makes it clear that the odds are in favor of a continuation of the price decline.
The first short term target is $0.1625. If this is crossed, the area around $0.1350 is the next target.