Ripple (XRP) Price Analysis: Channel Support at Major Floor
Ripple is gaining traction on its slide as it moves below the mid-channel area of interest on its descending channel. However, price is also hovering around a key support zone that has held since late November.
If buyers are waiting to buy on dips at this area, support might still hold and push price back to the channel top. Sustained bullish momentum could even lead to an upside break and a stronger rally. Then again, the 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse.
Also, the gap between the moving averages is widening to reflect increased selling pressure. The 100 SMA is just below the channel top of 0.3600 to add another layer of resistance while the 200 SMA adds one more barrier at 0.3700.
RSI looks ready to pull up as it hovers close to the oversold region, indicating that selling pressure is winding down and that buyers could return. Stochastic is also indicating oversold conditions and moving north could lead Ripple to follow suit.
XRP is showing signs of bottoming out as it slows down on the slide, but it still seems vulnerable to overall industry sentiment. So far, bearish predictions are convincing more investors to jump ship and wait for an actual rebound before reestablishing their holdings.
The digital asset might be due for a big bounce as it was just reported that R3 added Ripple as its first cryptocurrency supported on its new universal payment settlement platform.
According to Richard Gendal Brown, Chief Technical Officer at R3:
“The deployment of the Corda Settler and its support for XRP as the first settlement mechanism is an important step in showing how the powerful ecosystems cultivated by two of the of the world’s most influential crypto and blockchain communities can work together.”