XRP Price Analysis: XRP/USD Has Several Bearish Technical Confluences
- XRP/USD stuck within the narrowing range-block formation. The price is also moving within a descending wedge pattern.
- Ripple reported that $535.56 million worth of XRP was sold for the full year of 2018.
Ripple’s XRP is further plagued by the narrowing daily range, which can see an explosive breakout at any time. XRP/USD has been moving within this for going on 16 consecutive sessions now. The price has been tightening much further over the last 5 days and edging marginally lower. In terms of the range-block, the upper resistance should be noted at $0.3500, to the downside, support at $0.3150. These are the key levels that must be breached to see a strong committed trend, whatever direction that may prove to be.
Separately, it is interesting to note via the daily chart view that price action is also confined within a descending wedge formation. XRP/USD has been moving within this since 21 December 2018. As time has gone on further, the price has fallen and tightened with respect to its range. This coming after the decent bull run seen from mid-December 2018, up until the price peaked on 24th December. A deeper fall may still need to be seen, before big buying comes back into play.
Ripple Sold $535.56 Million of XRP for the Full Year 2018
Ripple this week released their quarterly report for Q4 2018. They detailed how they have sold $129.03 million worth of XRP in Q4 2018 and a big $535.56 million for the full year 2018. Further details included that the Ripple Q4 sales accounted for 0.24% of global XRP volume, 3 billion XRP released out of cryptographic escrow and 2.4 billion was returned to escrow. The average XRP daily volume was reported at $585.7 million, which was the highest since Q1 2018.
Further within the report, speaking on XRP availability across exchanges, there were over 30 new exchanges that listed XRP in Q4. Ripple noted that there are now over 100 exchanges worldwide that support XRP. Separately, there were also nine exchanges that listed XRP as a base pair against at least one other digital asset. Binance, the world’s largest digital asset exchange, listed XRP as a base against both TRON (TRX) and Zcoin (XZC).
Technical Review – XRP/USD
Given the earlier detailed price behavior, it does stack on the favor of the market bears, at least in the near-term. The range-block formation in particular would be part of a bearish flag set up. XRP/USD is being confined within the steep descending wedge pattern.
XRP/USD may very well continue to cool within the above-mentioned structures, until it falls to the psychological $0.3000 mark again. The price has not traded there since 17th December 2018, when the bulls made a big aggressive return.
Further on the above, there is a chunky area of demand, this tracks from $0.3000 down to $0.2500. This zone historically, has proven to attract big buyers, as seen in August, September and December 2018.
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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