Ripple Price Analysis May 6: Ripple Struggles To Find The Bottom. Will The Bearish Momentum End?
The troubles for Ripple are all over after the cryptocurrency has lost a total of 15% over the past 30 days which brings the price for XRP down to the 30 cents area. Ripple is not alone: Litecoin (-20%) and EOS (-13%) both also experiencing losses in the same period.
Ripple remains the third largest amongst the top cryptocurrencies by market cap, as it currently holds a $12.60 billion market cap value. The veteran project is trading for a cost that is -90% lower than its all-time high.
Looking at the XRP/USD 1-Day Chart:
Since our previous analysis, we can see that the coin has continued to fail to get back above the resistance of the 100-days moving average line. Over the past few days, the coin had attempted to break above the line but had failed to do so. We can also see that a short-term wedge formation has been starting to form over the past few days.
From above: The nearest level of resistance now lies at the upper boundary of the wedge. Above this, further resistance lies at $0.3257 and the 100-day moving average line. If the buyers continue above the 100-days moving average line, further resistance lies at $0.34, $0.35 and $0.3610.
From below: The nearest level of support now lies at the lower boundary of the wedge. Beneath the wedge, further support lies at $0.31 and $0.30. If the sellers continue beneath $0.30, additional support lies at $0.29, $0.2811 and $0.2650.
The Stochastic RSI oscillator has just gone through a crossover below in overbought territory which could signal a small pullback over the next few days. Similarly, the RSI has failed to break above the 50 levels as the bulls struggle to gain control of the market momentum.
The trading volume has been consistently decreasing over the past few days.
Looking at the XRP/BTC 1-Day Chart:
Against Bitcoin, we can see Ripple has also fallen further lower beneath support at 5587 SAT and 5297 SAT. The coin has recently found a level of support at 5099 SAT where a small rebound has been seen.
From above: The nearest level of resistance now lies at 5300 SAT. Above this, further resistance lies at 5590 SAT, 5790 SAT and 6000 SAT. Further resistance above 6000 SAT lies at 6210 SAT and 6730 SAT.
From below: The nearest level of support now lies at 5099 SAT, before reaching the 5000 SAT area. Further support lies at 4830 SAT, 4665 SAT, and 4500 SAT.
The RSI has been consistently underneath the 50 level which indicates that the bulls are struggling to gain any form of control of the market momentum but fail to do so, so far.