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Ripple’s Digital Currency XRP Forms Lower High! Set to Return to Downside?

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While the market leader Bitcoin has returned to consolidation with low volume trading, the third largest cryptocurrency by market capitalization has been making some significant movements. Ripple’s digital currency had been on a downward spiral since a bearish divergence occurred between price and RSI at the start of October. The divergence sparked a drop from $0.58 to a low of $0.29.

It had since started making movements back up but yesterday priced in a high around $0.47. Price action has dropped since forming this high and is currently trading around $0.45. The rise looked like it had the potential to change the market structure into higher highs and higher lows which would be a bullish scenario for XRP.

With the last high on XRP’s decline being at $0.49, XRP has failed to surpass it and maintains in a trend of lower lows and lower highs. Unless there is an upward movement sparked from here, the next move downward may very likely drop below the low close of $0.37. This would continue the series of lower lows and lower highs we have been seeing since the bearish divergence. The bullish factor being seen today is that today’s drop is on low volume showing little volume behind it. The market leader Bitcoin is likely to have a large impact on the direction of the next move as it represents 54% of the total market cap.

XRP Daily Price Action & Market Structure. XRP Daily Chart – Source: Tradingview.com

Key Takeaways:

  • Downward spiral sparked in early October for XRP after bearish divergence occurring.
  • XRP rose after the decline and looked likely to change market structure to higher highs and higher lows.
  • Has failed to overcome key point to change market structure.
  • Next decline could drop below last low close around $0.37.
  • Today’s drop is on low volume showing small strength behind it.
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Ripple’s Digital Currency XRP Forms Lower High! Set to Return to Downside? was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.