Ripple’s XRP has had its price consolidating over the previous weeks, failing to show moves in any direction.The altcoin might plunge further with the multiple obstacles waiting.Increased selling pressure might suppress XRP’s bullish moves, sending the coin’s value down by 12%.
XRP has had no significant moves over the last few days. The calm market had the alternative coin forming a dropping resistance trend-line since June. For now, Ripple might expect increased volatility after the stagnations.
Heavy Resistances Inhibit XRP Price
Since 21 June, XRP has witnessed lower highs movements, its daily chart indicating a diminishing resistance line. The virtual currency tried to recover from its lows on 22 June. XRP has traded in sideways since then. For now, Bollinger Bands indicates incoming volatility. Though, we do not know when such volatility will come.
Ripple failed to break over the 200-day SMA, a level that had XRP consolidating as it struggles to accumulate bullish sentiments. Keep in mind that the asset experiences low trading volume at the moment.
The bulls will have it hard with the amplified resistance and inadequate buying pressure to build the needed momentum. The Ichimoku indicator that displays collective resistance and support zones shows that XRP might be in a downward trend for an unpredictable future.
XRP’s network indicates massive resistance that might lock the altcoin in a bearish outlook.
Increased selling pressure and the market weakness, for now, might send XRP to retest a vital support zone before a further plunge. At the moment, the asset has its support at the 38.2% Fib extension at $0.62.
XRP will risk dropping 12%, trading at the demand zone ranging between $0.50 and $0.55 in case of increased downtrends.
On the other hand, XRP bulls will have to step up to break over the diagonal line mentioned above to confirm a bullish run. With such a move, the coin might surge to the 200-d SMA, a line that coincides with $0.74 and 78% Fib extension.
If you want to invest in XRP, beware of the low volumes and the risks of further plunges.
Stay tuned for more crypto updates.
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