- Ripple joins other major cryptocurrencies in a support breaking maneuver.
- The saving grace for XRP/USD is at $0.4 but a forming bear flag pattern threatens the same level.
Ripple like most of the major cryptocurrency in the market has suffered under that harsh hand of the bears. The rest of the crypto market has experienced the worst volatility levels in October 2018. The first week of the month saw Ripple trim gains below $0.6 while the support at $0.5 did not hold water earlier this week. Ripple (XRP) has been seeking refuge above $0.47 before the falloffs that hit the market on Thursday 11.
At the time of writing XRP/USD is down more than 12% after smashing past the support areas at $0.47, $0.45 and $0.42. The buyers managed to save the lifesaving support at $0.40. There is a bear flag pattern that is in formation in the 15-minutes timeframe chart. A break from this pattern could result in more declines breaking the support at $0.40.
However, the buyers seem to be aware of the risk and are strongly holding ground above the short-term support. Similarly, the RSI has retreated from the oversold levels. In addition, the MACD momentum indicator is making its way towards the mean line (0.0).
If the price can defy the bearish flag pattern and increase gains above $0.41, Ripple will face resistance at $0.42 as well as from the moving averages; with the 50 SMA hindering growth at $0.4214 and the 100SMA currently at $0.444. All the broken support areas will now work as resistance zones as Ripple battles to reclaim its glory above $0.5 and eventually $0.6.
XRP/USD 15-minutes chart