It seemed the XRP rally would never end after an epic 50 percent climb from $0.30 to $0.45 over the past 48 hours. However, it seems the dream has been shot down by strong resistance just below $0.48. After peaking at $0.477 earlier today, the XRP price began a steady decline to $0.44 before suddenly collapsing to $0.39 in a matter of minutes.
Fortunately, support kicked in and the price managed to climb back and is now holding above $0.40. The unexpected drop followed similar movements by Bitcoin (BTC) and Ethereum (ETH), both of which declined by around 5 percent at the same time. With money now moving quickly into altcoins, analysts see Bitcoin continuing this trend reversal all the way back to $7,000 levels.
Yesterday, the popular crypto rating site Weiss Ratings noted that Bitcoin was showing signs of bullish exhaustion but noted that XRP has confirmed a bullish breakout. In the usual contra-indicative fashion, the move comes hot on the heels of CNBC analyst Ran NeuNer tweeting that this “bull run will make 2017 look like play school.”
Graph from Coinlib.io
Certain technical indicators such as the relative strength index (RSI) and ‘moving average convergence divergence’ (MACD) have been predicting a decline due to the majority of digital assets floating into overbought territory this week. With XRP now breaching the SMA50 (1-hour) at $0.417, it’s likely that further losses are imminent. For now, the psychological $0.40 level is holding but a drop below will need to find support at $0.38 or the 200-day moving average (DMA200) of $0.342.
XRP is trading currently hanging in there at $0.418, down 3.98 percent today but still up an impressive 40 percent over the past week. Ethereum (ETH) has faired best through the decline, still up a whole 10 percent today despite the minor dip.