Technical Analysis and Market Entry: XRP Has Breached a Critical Bearish Flag Structure, Leaving Door Widen Open
- XRP is moving firmly within a bearish trend again, running towards its third consecutive week in the red.
- XRP/USD price action broke out of a bearish flag structure, leaving it vulnerable to some greater downside.
XRP/USD: Recent Price Behaviour
The XRP price is back to moving within a bearish market, after a temporary break from the selling. At present, it is running towards its third consecutive week in the red, having lost some 20%. It is now being forced to trade at the lowest levels seen in around four weeks, as the bears maintain downside pressure. XRP/USD before the most recent drop being observed was enjoying a run to the north.
A run higher of some four consecutive weeks was seen, where it gained 40%. The bulls drove the price from $0.2245 up to $0.3280, at the time it was the highest price that had been observed since August. Momentum to the north, however, did not appear to be convincing, as seen with the technical price behaviour. Over the four weeks of pushing higher, price action was forming a bearish flag structure.
Weekly Chart View
XRP/USD before the most recent drop as described above, was on the best run since October 2018. The market bears, however, proving their presence, which is yet to disappear. It has very much been the case since January 2018. Rallies continue to remain vulnerable to being sold, and they are yet to prove their sustainability. Critical weekly support was notable at $0.2850; it has established its relevance since August 2018.
The current run south is now the worst that has been observed since August of this year. There are still signs of further downside; it could still prove to be further punishing. XRP/USD has now re-entered a critical zone of support, which runs from $0.2750 down to $0.2245. The price has not traded below this since November 2017, which would likely spark much ‘FUD’ if breached.
Daily Chart View
The broken-down bearish flag structure can be clearly observed via the daily chart view. XRP bears are on full driving control, with the next major daily support insight, $0.2245. The price last traded down here on 24 September and 15 August. On both noted occasions, buyers were found and helped provide a decent move back north.
Given the above-detailed bear flag breach, further moves to the south are still eyed. An entry around current market price is of interest, with targets at; $0.2460, $0.2300 and then $0.2250, stops to be placed at $0.2900.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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