- Broken trend line to the downside
- 200 EMA just above
- Crypto slumping in general
The Ripple markets have been sideways for quite some time, as cryptocurrency markets have struggled to gain a footing. With that, market participants have shown a proclivity to simply go sideways and do nothing. Meanwhile, central banks around the world doing everything they can to boost them by cutting interest rates, adding quantitative easing, and many other schemes.
Ripple, of course, is a relatively small coin and therefore secondary to places in markets like Bitcoin. Bitcoin has struggled quite a bit recently and has broken through a descending triangle, which of course is a very ominous sign for other cryptocurrencies such as Ripple, Ethereum, Litecoin, and many others. Quite frankly, if Bitcoin cannot take off to the upside, none of these other markets have any significant chance.
Trend line break
The trendline that has recently been broken had been very supportive for some time, but then got broken. The 200 EMA has been broken through to the downside, showing signs of rolling over and breaking down from there as well. With that being the case, it’s likely that the $0.28 level could be targeted, perhaps even lower than that.
One thing is for sure, the markets have not had upward mobility for several weeks. As the Bitcoin markets roll over, it’s very likely that this market will be pulled down as the demand simply isn’t there.
Technical analysis
The technical analysis for this pair is, of course, that the trend is starting to change. Now, it is only a matter of time before a breakdown kicks off a shorting opportunity. At this point, cryptocurrencies look like they are sliding. Most profit will be made shorting these markets.
Cryptocurrencies look like they are sliding. Most profit will be made shorting these markets.
Below the $0.28 level, the next support level is at the $0.27 level, and then eventually the $0.25 level. To the upside, there is the 50-day EMA, which is crossing the $0.29 level, and the previous trendline, both causing significant resistance. With that in mind, it’s very likely that rallies will be sold into as well.
