XRP/USD poised for breakdown following rejection

  • Ripple recovery from the recent low at $0.26 hits a barrier at $0.3052.
  • XRP/USD is facing increasing selling pressure; technical levels highlight a stronger bearish grip.

After fighting tooth and nail to bring down the stubborn seller congestion at $0.30, XRP hit pause at $0.3052. Sustaining gains above this became difficult mainly due to the lack of enough trading volume. A significant number of investors are choosing to remain in the sidelines as they wait for confirmation that XRP has the ability to sustain the momentum.

For now, Ripple is facing a reversal as selling activities mount, intensely pressing down on the resistance turned support at $0.29. The 50% Fibonacci retracement level, marginally above $0.29 was a resistance zone on August 24. If Ripple holds above this level, there is a chance a bounce would occur, pulling the price above $0.30 again.

For now, the technical picture is turning bearish as shown by the RSI. Similarly, the MACD has stalled at 0.0045 after consistently rising from -0.0043 (levels recorded on August 27). In other words, the two indicators prove that selling activities are gaining traction following the rejection from $0.3052.

Extended losses below $0.29 could retest the support at $0.28. A formidable bounce is expected at $0.26 (primary support). On the upside, gains above $0.30 must be followed by higher trading volume to sustain action towards $0.3250 (August high).

XRP/USD 2-hour chart