Ripple (XRP) is hanging by a thread as the price is ready to decline all the way to the bottom of the descending triangle it has been trading in since 2018. This triangle is now extremely likely to be broken to the downside as Ripple (XRP) has failed miserably every time it has attempted to break out of it. The price has now faced a strong rejection at the top of this descending triangle and is headed towards the 200 day moving average. It is likely that the price will find short term support at that level but uncertainties loom over in the grand scheme of things. First of all, the technical alone point to the strong possibility of a major decline in the weeks and months ahead. Second of all, Ripple (XRP)’s fundamentals have hardly improved and it risks regulatory action over its status as a potential security.
The cryptocurrency saw a lot of hype during the last bull market but that bullish momentum is now nowhere to be seen. The cryptocurrency has been particularly sluggish since the beginning of the year in terms of price growth. Ripple (XRP) used to be the cryptocurrency that would rise aggressively every time Bitcoin (BTC) would rally but lately we have not seen much of that. Even the recent rally in XRP/USD is likely to end in Ripple (XRP) giving away most of its gains. RSI on the daily chart now remains highly overbought and a fall below the 200 day moving average would increase the possibility of a death cross as the 200 day moving average crosses below the 50 day moving average. This fits in the big picture as to how Ripple (XRP) might end up falling below $0.15 and stay there for a long time once it breaks below the descending triangle.
Ripple (XRP) is trading in a descending triangle against Bitcoin (BTC) as well. The price has found some relief short term and might still rally towards the top of the triangle but the most likely scenario is that it will trade sideways within this triangle till it eventually breaks below it. It is pertinent to note that XRP/BTC broke the triangle once before the beginning of 2018 but it shot straight through it during the last bull run. Since then it has failed to beak past the trend line resistance after repeated attempts.
Just a quick glance at the weekly chart between November, 2018 and April, 2019 is enough to show us how weak Ripple (XRP) has been against Bitcoin (BTC). XRP/BTC formed at least ten weekly candles in this range along the trend line resistance but failed to break past it. In other words, it kept testing the resistance continuously for ten weeks but it could not break it. Eventually the price had to fall and it is now testing the support. So far, it has held its ground against Bitcoin (BTC) but if it keeps testing the support, it is very likely that it will eventually break it to decline towards new lows.