Ripple remains under heavy downside pressure as it has yet to establish a technical price floor.
The XRP/USD pair has lost nearly 30 percent since the start of November, and is currently trading around five percent below its December opening price.
Technical analysis shows that the XRP/USD pair performed a bearish triangle breakout on the daily time frame, moving the cryptocurrency within touching distance of the $0.20 level.
The four-hour time frame shows that a bullish inverted head and shoulders pattern was recently invalidated, which is a bearish development for the XRP/USD pair over the short-term.
Price is also making lower lows, which again hints that the XRP/USD pair has yet to find a meaningful price bottom. The $0.1900 level now offers the strongest form of long-term support under the psychological $0.2000 level.
Bulls ideally need to rally the cryptocurrency toward the $0.25 level in order to encourage buying and then stabilize the XRP/USD above $0.285, which is an important technical area.
Looking at potential pattern formation, if buyers are able to rally price after one more push lower, a large inverted head and shoulders pattern could form on the daily and four-hour time frames.
The Relative Strength Index on the daily time frame shows that Ripple is oversold, while the MACD indicator is also showing pockets of bullish MACD divergence.
According to the latest sentiment data from The TIE, the short-term sentiment towards Ripple is neutral at 52 percent, while the overall long-term sentiment towards the cryptocurrency is bearish at 24 percent.
XRP / USD Daily Chart by TradingView
Upside Potential
The four-hour time frame shows that key technical resistance is now located at the $0.235 and $0.25 levels.
Key technical resistance over the medium-term is located at the $0.285 and $0.31 levels.
Downside Potential
The four-hour time frame is showing that the XRP/USD pair has strong medium-term technical support around the $0.21 and $0.20 levels.
Critical long-term technical support for XRP is located at the $0.19 level.
Summary
Ripple has yet to establish a meaningful price floor, placing the emphasis on more XRP/USD weakness toward $0.19.
Bulls need to rally price above the $0.25 level to stabilize the cryptocurrency in the short-term.
The XRP/USD pair has lost nearly 30 percent since the start of November, and is currently trading around five percent below its December opening price.
Technical analysis shows that the XRP/USD pair performed a bearish triangle breakout on the daily time frame, moving the cryptocurrency within touching distance of the $0.20 level.
The four-hour time frame shows that a bullish inverted head and shoulders pattern was recently invalidated, which is a bearish development for the XRP/USD pair over the short-term.
Price is also making lower lows, which again hints that the XRP/USD pair has yet to find a meaningful price bottom. The $0.1900 level now offers the strongest form of long-term support under the psychological $0.2000 level.
Bulls ideally need to rally the cryptocurrency toward the $0.25 level in order to encourage buying and then stabilize the XRP/USD above $0.285, which is an important technical area.
Looking at potential pattern formation, if buyers are able to rally price after one more push lower, a large inverted head and shoulders pattern could form on the daily and four-hour time frames.
The Relative Strength Index on the daily time frame shows that Ripple is oversold, while the MACD indicator is also showing pockets of bullish MACD divergence.
According to the latest sentiment data from The TIE, the short-term sentiment towards Ripple is neutral at 52 percent, while the overall long-term sentiment towards the cryptocurrency is bearish at 24 percent.
XRP / USD Daily Chart by TradingView
Upside Potential
The four-hour time frame shows that key technical resistance is now located at the $0.235 and $0.25 levels.
Key technical resistance over the medium-term is located at the $0.285 and $0.31 levels.
Downside Potential
The four-hour time frame is showing that the XRP/USD pair has strong medium-term technical support around the $0.21 and $0.20 levels.
Critical long-term technical support for XRP is located at the $0.19 level.
Summary
Ripple has yet to establish a meaningful price floor, placing the emphasis on more XRP/USD weakness toward $0.19.
Bulls need to rally price above the $0.25 level to stabilize the cryptocurrency in the short-term.
