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The crypto market experienced a sharp drop yesterday, liquidating many long positions. A lot of cryptocurrencies are approaching their long-term support levels, and it remains to be seen how bulls will defend them.

Technical Analysis

By Grizzly

The Daily Chart

On a daily time frame, XRP moves down inside a descending channel (in yellow). The intersection point of the channel’s midline with the horizontal support at $0.5 (in green) is a crucial level to monitor. If the bulls defend it, one can expect the channel top to be retested at around $0.8.

Otherwise, the bears have the potential to push the price down to as low as $0.37. If buyers can hold the price above $0.5 and accumulate in this area, the bearish momentum would fade and open up the doors for a potential move to the upside.

The bottom line is that based on the current sentiment, where the market seems to be in the doubt/fear phase, and buyers are not very inclined to make big purchases.

1
Source: TradingView

Moving Averages:

MA20: $0.67

MA50: $0.75

MA100: $0.74

MA200: $0.84

The 4-Hour Chart

On the 4-hour timeframe, although the pressure from sellers has eased, the intersection of the horizontal resistance at $0.63 (in blue) with the dynamic resistance (in red) can be a severe barrier for the price to recover.

Therefore, it’s important to see how the price will behave around it before drawing any further conclusions.

Source: TradingView

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency

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