- Ripple price remains under pressure after snapping two-day winning streak.
- Fortnight-old bearish channel, downbeat oscillators suggest a continuation of short-term XRP weakness.
- Three-month horizontal support, key SMAs can test bears, but no real recovery is expected below $3.36.
- Short-term bias turns bearish, but broader bullish trend stays intact beyond $2.15, with $2.65 offering immediate support.
Ripple (XRP) price dips 0.5% to $2.93 during Wednesday’s European session, extending the previous day’s retreat from a weekly top amid sluggish markets.
The XRP’s market cap and daily trading volume also eased to $175.76 billion and $5.76 billion, respectively, by the press time, versus Tuesday’s figures of $182.24 billion and $6.1 billion in that order, per Santiment.
Still, Ripple continues to trade within a two-week descending trend channel, keeping sellers hopeful. The neutral condition of the 14-day Relative Strength Index (RSI) is adding strength to the downside bias and downbeat signals from the Moving Average Convergence Divergence (MACD) indicator.
That said, the sellers are approaching key support levels, and a clear break below them becomes necessary to challenge the XRP’s strong monthly and yearly gains.
Ripple Price: Daily Chart Highlights Pullback
Ripple’s pullback from an upward-sloping resistance line from April 2021, followed by a downside break of a seven-month support, joins neutral RSI and bearish MACD signals to favor short-term sellers.
However, the 100-day Simple Moving Average (SMA) and a five-month horizontal support, respectively near $2.70 and $2.65, could test the XRP’s further downside.
Following that, the 200-day SMA and an upward-sloping trend line support from November 2024, close to $2.45 and $2.15 in that order, will act as the final defense of the buyers.
It’s worth mentioning that the XRP’s daily closing beneath $2.15 will make it vulnerable to revisit the yearly low of around $1.61.
Alternatively, Ripple’s recovery may initially aim for the weekly top of $3.11 before the horizontal resistance area from January, close to $3.33-$3.35. However, the real challenge for the XRP bulls is an upward-sloping trend line resistance from April 2021, around $3.63 at the latest, a break of which could propel prices to the $4.00 threshold.
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Ripple Price: Four-Hour Chart Favors Short-term Sellers
Despite short-term XRP inaction around the 200-bar SMA, bearish MACD signals, neutral RSI, and a persistent drop below the 50-bar SMA hint at XRP’s slow grind towards the south. This highlights a two-week-old channel’s lower boundary, near $2.65, as an immediate support to watch for sellers.
Should the quote fail to bounce off $2.65 support, the 61.8% and 78.6% Fibonacci retracements of its June-July moves, near $2.58 and $2.29, respectively, could test the sellers before directing them toward the deeper levels discussed on the daily chart.
On the flip side, a rejection of the bearish channel, by a clear break of its upper boundary surrounding $3.08, will need validation from the 50-bar SMA of $3.15 and a short-term horizontal resistance area surrounding $3.36-$3.33 to recall the XRP bulls. Following that, the higher level of the daily projections will be in the spotlight.
Conclusion
After a two-week downtrend, Ripple remains vulnerable to short-term downside, pressured by bearish chart patterns and momentum indicators.
While the quote is under pressure to approach the $2.65 key support, a deeper decline to reverse monthly or yearly gains requires sustained selling pressure.
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