Outlook For XRP
Here on the weekly XRP chart, there are a few things that I want to point out.
Bearish indicators:
Trend: The trend is clearly down. You can see that price has been consistently printing lower highs and lower lows, since early 2018.
Moving Averages: You can see that price first fell below the 200 week moving average (in purple) in the summer of 2019. XRP has consistently failed to rally back above the 200 week MA. It has been rejected there on the past three major attempts.
Weekly Death Cross: You can see that the 50 week MA has crossed below the 200 week MA, which is a sign of prolonged weakness.
RSI: You can see that the RSI has formed a higher high while price has formed a lower low. That's a bearish divergence which could lead to weakness in the coming weeks, although there has already been a breakdown of the divergence on the RSI.
Bullish indicators:
Support: We can see that XRP is holding support on the 50 week moving average (in orange) which it recently broke above. Additionally, price was able to break out above the falling blue wedge, and XRP is currently testing that area for support.
The Base: XRP has been forming a long base of support, as it did before it erupted in 2017. It's not a guarantee that price will explode again, but it is a sign of stability.
Overall, the outlook for XRP is neutral right now. A breakout above the 200 week moving average (around 0.345) would be very bullish, as it would establish a higher high while also taking out major resistance at the 200 week. However, a breakdown below the 50 week moving average would send XRP back into the blue falling wedge, and that would be particularly bearish. If that happens, the 50 week MA would have failed to hold as support, and the breakout of the falling wedge would be a failure as well. Such a move could cause XRP to fall below 0.10.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Bearish indicators:
Trend: The trend is clearly down. You can see that price has been consistently printing lower highs and lower lows, since early 2018.
Moving Averages: You can see that price first fell below the 200 week moving average (in purple) in the summer of 2019. XRP has consistently failed to rally back above the 200 week MA. It has been rejected there on the past three major attempts.
Weekly Death Cross: You can see that the 50 week MA has crossed below the 200 week MA, which is a sign of prolonged weakness.
RSI: You can see that the RSI has formed a higher high while price has formed a lower low. That's a bearish divergence which could lead to weakness in the coming weeks, although there has already been a breakdown of the divergence on the RSI.
Bullish indicators:
Support: We can see that XRP is holding support on the 50 week moving average (in orange) which it recently broke above. Additionally, price was able to break out above the falling blue wedge, and XRP is currently testing that area for support.
The Base: XRP has been forming a long base of support, as it did before it erupted in 2017. It's not a guarantee that price will explode again, but it is a sign of stability.
Overall, the outlook for XRP is neutral right now. A breakout above the 200 week moving average (around 0.345) would be very bullish, as it would establish a higher high while also taking out major resistance at the 200 week. However, a breakdown below the 50 week moving average would send XRP back into the blue falling wedge, and that would be particularly bearish. If that happens, the 50 week MA would have failed to hold as support, and the breakout of the falling wedge would be a failure as well. Such a move could cause XRP to fall below 0.10.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
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