Ripple's XRP token is taking a beating amid a broad losses across the cryptocurrency markets.
The price of XRP fell to a two-week low of $0.99 today, according to CoinDesk's Ripple Price Index. The XRP/USD exchange has depreciated by 11.86 percent in the last two hours, indicates CoinMarketCap.
As of writing, the world's third-largest cryptocurrency by market capitalization is changing hands at $1.01. XRP was last seen this low on Jan. 17 when prices fell to $0.85.
The recovery that ensued then ran out of steam in the $1.72 neighborhood on Jan. 18. Since then, XRP has been steadily losing altitude, creating lower highs (bearish prices) on the price chart despite big financial firms publicly expressing their interest in the blockchain startup's technology.
That said, XRP is not the only loser today. Except for ethereum's ether token, all top 20 currencies by market capitalization are trading in the red. Bitcoin has dropped by 8.69 percent in the last 24 hours. Cardano and Stellar are down 14 percent, while bitcoin cash has depreciated by 10 percent.
The price chart suggests that XRP could extend the decline to 0.8647 levels.
The above chart (prices as per Bitfinex) shows:
- Bears are in control, as indicated by the series of higher lows.
- 5-day moving average (MA) and 10-day MA are trending lower, indicating a bearish setup.
- The relative strength index (RSI) also favors further losses in XRP.
- $0.86 marks the confluence of the 100-day MA and 78.6 percent Fibonacci retracement of the rally from Dec. 7 low to Jan. 4 high.
- XRP looks set to test $0.8647 in the next 12-24 hours.
- A daily close (as per UTC) below $0.8647 would expose support at $0.64 (Dec. 18 low). However, a move below $0.86 may end up pushing the 4-hour RSI and the daily RSI into oversold territory (below 30.00). So, the odds of a further decline to $0.64 would be low.
- Bullish scenario: Meanwhile, only a daily close (as per UTC) above the 10-day MA would signal bearish invalidation and could yield short-term consolidation.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Ripple.
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