The majority of the cryptocurrency market is showing losses today as prices undergo a retracement. The market leader Bitcoin has slightly retraced from its recent highs, but many altcoins are showing steeper losses.
Ripple’s XRP is one altcoin which has been underperforming the market leader in the last few days. XRP has depreciated around 9% from its Nov 6 high. This was preceded by a movement which saw the coin appreciate over 20% from $0.45 to a high around $0.56. The volume on the movements which brought price up to this high was far larger than the recent volume we have been seeing on the retracement. This could show there is little strength behind the drop and a return to price rises being likely.
Price is also approaching the 200 EMA and the $0.49 price level which could both act as support. The MACD is also continuing to diverge to the upside showing the longer-term momentum is largely still with the buyers.
The hourly chart shows the shorter-term momentum has shifted to the sellers. RSI has been forming lower lows and lower highs and the MACD has crossed over its centerline to the downside and continues to diverge downward. While price mostly consolidated around $0.53 after the rise, the significant part of the retracement brought price from $0.53 to around $0.50 over the space of a couple of hours. Price currently trades around $0.51 with the next support anticipated at $0.49. This is also the point where the hourly 200 EMA is trading.
- XRP has retraced since an over 20% rise which brought it from $0.45 to a high near $0.56.
- Price has since moved to $0.53. Shorter-term momentum has shifted to the sellers but longer-term momentum remains with the buyers.
- Support anticipated around the $0.49 level which is also where the daily and hourly 200 EMA are trading.
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