Ripple (CRYPTO: XRP) has lost over 70% of its value since making an all-time high of $1.96 on April 14. It’s fallen in line with most other cryptocurrencies including Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which are down about 50% and 56%, respectively, from all-time highs.
One of Ripple’s largest crashes came on May 19, a week after Elon Musk said Tesla Inc (NASDAQ:TSLA) would no longer accept Bitcoin as payment for its electric vehicles. The statement sent cryptocurrencies on a crash course and few have recovered. Since falling 33% on May 19, Ripple consolidated and settled into a bearish descending triangle.
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The Ripple Chart: Ripple broke down from the descending triangle on June 19 after testing support, and therefore weakening it, at the 79-cent mark on seven separate occasions. After retesting that level as resistance on June 20, and failing to break back above it, Ripple fell 21% and failed to hold at a lower support near the 63-cent level and on Tuesday the crypto failed to break back above it.
Ripple also lost support of the eight-day and 21-day exponential moving averages (EMAs) and the eight-day EMA is trending below the 21-day EMA, all of which indicate further bearish price action. On Monday Ripple also crashed through the 200-day simple moving average (SMA), which indicates its overall sentiment has turned bearish. The 200-day SMA will now act as resistance on a move north.
On Tuesday afternoon, Ripple was attempting to print a hammer reversal candle on the daily chart indicating it may be setting up a bounce because the candle’s long lower wick demonstrates bulls bought the dip. The crypto’s relative strength index (RSI) was also sitting at about 28% also indicating it could bounce up.
Bulls want to see Ripple maintain support at the 56-cent level and for Tuesday’s candle to mark the bottom. If Ripple can form a base in that zone, it could make a move back up toward resistance at the 79-cent level.
Bears want to see sustained bearish volume to bring Ripple back down under 56 cents. A close under that level on the daily chart could cause Ripple to retest support down at 42 cents.
XRP Price Action: Ripple was trading down 12.8% to $0.5739 at publication time.
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