Ripple (XRPUSD) Technical Analysis: Joining the Breakdown Bandwagon

Ripple was previously fighting to keep its head above the bottom of the symmetrical triangle but now it seems that a breakdown is underway. This could send Ripple lower by the same height as the chart pattern, which spans .3500 to .6000.

The 100 SMA is still above the longer-term 200 SMA, though, so the path of least resistance might be to the upside and buyers could still have a chance to return. Then again, these indicators might simply be oscillating to reflect sideways price action and have yet to catch up to the slide.

Stochastic has some room to head lower so Ripple might follow suit. This suggests that sellers have enough energy to push for more losses until oversold conditions are seen. Turning higher could bring bullish momentum back in but it looks like it could take a while. RSI also has a bit of ground to cover before hitting oversold levels, which also confirms that sellers could hold on to the upper hand for a bit longer.

Ripple has been one of the more resilient cryptocurrencies amid the market selloff but it looks like it’s joining the rest of its peers in the bloodbath. The declines are seen to have started on account of the Bitcoin Cash mining wars then worsened by the SEC ICO crackdown, along with the prevailing FUD sentiment in the markets.

Among its peers, however, Ripple might still have a better shot at rebounding or at least keeping its losses limited. After all, the company continues to make progress in striking partnerships with big institutions and remains poised to launch its xRapid platform.

Besides, Ripple has recently overtaken ethereum in the top two spot in terms of crypto market cap and might even be able to push bitcoin of its top position if the current market environment persists.

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