The breakdown of $0.31 demand level by the bearish momentum may push XRP to its previous low of $0.28 that is if the supply level of $0.33 holds.
By Azeez Mustapha
Updated
2 mins read
Supply levels: $0.33, $0.38, $0.42
Demand levels: $0.31, $0.28, $0.24
XRP/USD broke out of its range-bound zone on the long-term outlook. The bulls could not break the barrier at $0.38 price level, the bullish rally was terminated but the bears did break down the $0.33 former demand level with the formation of a big bearish Japanese candle on January 10. XRP/USD started another consolidation within the range of $0.33 and $0.31. The coin is no longer trading on the two EMAs but rather below the two EMAs as a bearish trend confirmation.
The cryptocurrency is currently exposed to the demand level of $0.31, trading below the 21-day EMA and 50-day EMA and the two EMAs are gradually moving apart which indicate a gradual increase of bearish momentum in the XRP market. Although the bears defended the supply level of $0.38 last week, XRP price could not reach the target of $0.28. The MACD period 12 with its histogram is below zero levels and the signal lines pointing down connotes further declination of the XRP price.
The breakdown of $0.31 demand level by the bearish momentum may push the coin to its previous low of $0.28 that is if the supply level of $0.33 holds. The patient is required before placing any trade.
XRP/USD is on the bearish trend on the medium-term outlook. The sideways movement of the XRP price was terminated on January 10 as the bearish engulfing candle emerged as a sign of bear’s increased momentum in the XRP market. XRP price fell and the former demand level of $0.33 broke down and the low of $0.31 price level was reached. The bears lost the pressure and the price was pushed up to retest the broken level.
The price is currently below the 21-day EMAs and 50-day EMA and the MACD period 12 with its histogram is faintly moving down which indicate sell signal.
Azeez Mustapha is a specialist in Computer Studies (including DTP), Forex and Crypto trading professional. Being expert technical and currency analyst, as well as experienced fund manager and author of several books, Azeez places strong focus on crypto market studies conducting comprehensive price analyses and sharing forecasts of presumptive market trends.
