DoubleLine: Digital Currencies Will End The Dollar’s Status As The World’s Reserve Currency
October 29th 2020
- Ripple is in grave danger of freefalling to $0.20 if the ascending channel support caves in.
- XRP/USD is mainly in the bears’ hands, especially with RSI moving towards the oversold area.
The cross-border cryptocurrency has generally been in an upward momentum since the beginning of September despite the up and down price action within an ascending parallel channel. XRP has also not been able to make any significant movement above $0.26. Instead, this level has become a crucial resistance zone that if broken, Ripple could rush towards $0.30.
At the time of writing, the fourth-largest cryptocurrency is doddering at $0.243. Marginally above the prevailing market value, bulls are facing a challenging hurdle highlighted by the 50-day Simple Moving Average (SMA).
The ascending parallel channel presents immediate support to XRP in a bid to prevent declines eyeing $0.20. This downward pull is reinforced by the Relative Strength Index (RSI) as it dips towards the oversold area.
A break below the channel would trigger a selloff that will be difficult to stop. However, the 200-day SMA is in line to absorb some of the selling pressure. Besides, $0.22 functioned as support in September and could also rise to the occasion and save XRP a trip downstream to $0.2.
XRP/USD daily chart
XRP/USD price chart by Tradingview
It is worth mentioning that the bearish outlook will be invalidated if the channel support remains intact. On the other hand, if the price closes above the 50-day SMA, XRP could resume the uptrend, targeting $0.26 as well as the middle boundary of the ascending channel.
Ripple Intraday Levels
Spot rate: $0.243
Relative change: 0.0003
Percentage change: 0.12%
Trend: Bearish bias
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