- XRP failed to continue its surges towards $0.8 after the weekend gains.
- Ripple battles to secure support around the 50-SMA to avoid plunging below $0.7.
- The RSI and MACD indicators support the bearishness, leaving the altcoin susceptible to price drops.
Ripple registered extended upward moves after its worst July losses that had the coin plummeting to $0.52. The global money transfer coin seems to gain investor interest again. Moreover, the network launched the ODL (On-Demand Liquidity) settlement corridor between the Philippines and Japan.
The payment corridor is vital to Ripple's services due to the around $2 billion per year remittance marketplace between the two nations. With the news, XRP registered sudden uptrends over $0.7. The weekend sessions saw the altcoin extending towards $0.8. However, XLM stalled near $0.78 on exchanges such as Bitfinex.
XRP's Reverse Gears
At the moment, Ripple trades at $0.72 after the rejections from $0.78. The coin has seen its actions confined within an ascending pattern. The pattern's upper border increases pressure on the alt's price, canceling XRP's hope to rise above $1.
Meanwhile, the break beneath the middle border seems to strengthen bears to dominate the market. That way, XRP has to maintain the support zone at the 50-SMA. That way, Ripple will control the losses that might see it exploring zones below $0.7 and further down.
For now, XRP's near-term technical outlook appears bearish. The MACD moved towards the mean line, affirming bears dominance. Also, the 12-d EMA crossed beneath the 26-d EMA.
Meanwhile, the RSI supports the bearish thesis with the recent oversold territory retreat. If RSI moves beneath the middle line, closing the oversold zone gap, XRP may see activated selling actions.
If you want to invest in XRP, beware of the bearishness that the market depicts at the moment. Also, the total market seems to lack the correct market catalysts to ensure stable price increases. However, if you think that dips are a buying opportunity, you can consider Ripple's movements for now.
· Spot rate - $0.722
· Trend –bearishness
· Volatility – increasing
· Support level - $0.7 and the 50-SMA
· Resistance level - $0.75 - $0.78