XRP Needs To Recover, After Piercing Bottom of Lifelong Channel!
As I said in a recent Tweet, It's interesting that so many cryptocurrencies are breaking down below major support on their charts at the exact same time. With BTC it's the 21 week MA. With LTC it's the 50 week MA. With XRP it's the rising log channel.
As you can see, the bottom of the rising log channel has been breached for the first time in the history of XRP's existence. That is definitely not a bullish sign. When alts had that powerful rally last week, XRP had an ability to show some renewed strength. Unfortunately, it failed to rise above the 50 week MA (in orange,) and it managed to close the week below the 200 week MA (in purple.) To make matters worse, XRP has printed new bear market lows this week, reaching as low as 0.2028.
Clearly XRP remains in a bear market, with no relief to speak of yet. It is still forming lower highs and lower lows, and it's completely failing to break above critical resistance in a sustained way. Additionally, it is consistently breaking down below critical support levels. So, until that changes, and we start to see technical proof that XRP is showing sustainable signs of life, the prognosis isn't good. We need to see a sustained breakout above overhead resistance levels, with higher highs and lows being printed on the chart. That just isn't happening right now.
So, how bad could it get? Well, that depends on what XRP does here. If we can get back into the uptrend channel, I would be right back into bull mode. But XRP is showing continued weakness on the chart. So, I think the immediate downside risk is to the top of the big red "freefall zone" on the chart. That's right around fifteen cents. If XRP falls into that area, and fails to recover from it, there is a very real technical risk that it could melt to the next support level, which would be right around three cents.
However, we are nowhere near that danger zone yet. XRP remains in a recoverable position, and the weekly candle has not closed yet. So, there are still several days that could totally change the outlook of this weekly analysis.
On the brighter side, we can see some potential relief coming in soon from the RSI. As you can see, most of the time when the RSI fell down around the 37.50 range, that corresponded to a major low in XRP. There was one occasion in 2015 where the RSI fell below that level, but there wasn't a substantial selloff on the chart. As you can see, the RSI is very close to the 37.50 range. So, that could provide a much needed upside reversal for XRP.
For now, we need to pay close attention to how this weekly candle closes. If it closes below the rising channel, that would be a bearish sign that could be indicative of more downside potential for XRP. If XRP can get back inside of the rising channel, that would be a sign of renewed strength, but we would need to see a continuation in the following week.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
As you can see, the bottom of the rising log channel has been breached for the first time in the history of XRP's existence. That is definitely not a bullish sign. When alts had that powerful rally last week, XRP had an ability to show some renewed strength. Unfortunately, it failed to rise above the 50 week MA (in orange,) and it managed to close the week below the 200 week MA (in purple.) To make matters worse, XRP has printed new bear market lows this week, reaching as low as 0.2028.
Clearly XRP remains in a bear market, with no relief to speak of yet. It is still forming lower highs and lower lows, and it's completely failing to break above critical resistance in a sustained way. Additionally, it is consistently breaking down below critical support levels. So, until that changes, and we start to see technical proof that XRP is showing sustainable signs of life, the prognosis isn't good. We need to see a sustained breakout above overhead resistance levels, with higher highs and lows being printed on the chart. That just isn't happening right now.
So, how bad could it get? Well, that depends on what XRP does here. If we can get back into the uptrend channel, I would be right back into bull mode. But XRP is showing continued weakness on the chart. So, I think the immediate downside risk is to the top of the big red "freefall zone" on the chart. That's right around fifteen cents. If XRP falls into that area, and fails to recover from it, there is a very real technical risk that it could melt to the next support level, which would be right around three cents.
However, we are nowhere near that danger zone yet. XRP remains in a recoverable position, and the weekly candle has not closed yet. So, there are still several days that could totally change the outlook of this weekly analysis.
On the brighter side, we can see some potential relief coming in soon from the RSI. As you can see, most of the time when the RSI fell down around the 37.50 range, that corresponded to a major low in XRP. There was one occasion in 2015 where the RSI fell below that level, but there wasn't a substantial selloff on the chart. As you can see, the RSI is very close to the 37.50 range. So, that could provide a much needed upside reversal for XRP.
For now, we need to pay close attention to how this weekly candle closes. If it closes below the rising channel, that would be a bearish sign that could be indicative of more downside potential for XRP. If XRP can get back inside of the rising channel, that would be a sign of renewed strength, but we would need to see a continuation in the following week.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
