Ripple’s price recently experienced the worst pump-and-dump situation in its history. It is believed that a Telegram group with more than 200,000 members was responsible for the pump. However, it seems that the XRP whales are poised to cash in and out of projects that may have locked up their funds since the losses in December.
At the time of writing, the price of XRP is dodging at $0.38 after dropping sharply from $0.75. The barrier at this level cuts the expected advance to $1. On the bright side, the 50 Simple Moving Average on the 4-hour chart is useful and prevents the cross-border token from falling any further.
Meanwhile, XRP bulls are working around the clock to break above the resistance at $0.4. However, another daily close below this level might see a spike in selling pressure. The support at the 50 SMA ($0.34), may not be strong enough to hold the token in place. Thus paving the way for a further decline to the 200 SMA around $0.29.
XRP Price Analysis: XRP / USD 4 hour chart
Moving Average Convergence Divergence seems to have validated the bearish outlook. This indicator follows the trend of the asset and also measures its momentum. MACD can be used to identify bearish buy and sell bearish positions.
If the MACD line (blue) crosses below the signal line, it is best not to enter new positions, possibly selling. On the other hand, a cross above the signal line indicates that it is time to buy.
In this case, the MACD divergence below the signal line is still wide. So calls for caution as XRP might pull back again before a significant trend reversal emerges.
Spot rate: $0.38
Relative change: 0.01
Percentage change: 3%