Despite improving by 40% in the last 10 days, the Ripple price has failed to trade above several key resistance levels. This could be a bad sign for XRP.
Ripple is last trading at $0.6800, down $0.026 (-3.77%).
Like much of the market, Ripple has performed well following the heavy losses it suffered on the 21st and 22nd of this month. However, unlike many of its peers, the rally has fallen short of reversing many of the bearish indicators that have been weighing it down.
In fact, as I’m writing this report, XRP is retreating below the one threshold it had managed to trade above in the last two days.
The daily chart highlights a confluence of significant resistance levels.
Firstly, the 200-day moving average at $0.7232 proved the top on Tuesday. Moreover, also again yesterday.
Additionally, a strong downtrend has been in place from the top of May 20th’s knee-jerk higher in the aftermath of the 19th’s crypto crash.
This trend has capped prices for the last 6 weeks and can currently be seen at $0.6830. The price has traded above the trend line in each of the last three days. However, as yet has failed to finish the day convincingly above the line.
Furthermore, the horizontal resistance at $0.7700 adds another obstacle to the path higher.
That being said, the Ripple price has closed higher in 6 out of the last 7 days, so the momentum is clearly bullish. However, until XRP trades above $0.7700, it remains vulnerable. But if it does, XRP should kick on and visit the 100 DMA at $0.9200.
At the the moment the cryptocurrency market is experiencing a broad recovery, however, the sentiment could always reverse. In that instance, XRP could return to the $0.5470 low of the 22nd.
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