XRP continues to trend lower inside a descending channel on the 1-hour time frame as it forms lower highs and lower lows. Price just recently bounced off support, so a move to the top could be in the works.
Price continues to hover around the mid-channel area of interest to see if it could keep climbing. However, the 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. This means that resistance is more likely to hold than to break and that the downtrend is set to gain traction.
The moving averages are also close to the mid-channel area of interest to add to its strength as a ceiling. A move past this could also hit a roadblock at the very top of the channel at .3300 where more sellers might be waiting. Then again, the gap between the moving averages is narrowing to indicate weakening selling pressure and hint at a potential bullish crossover.
RSI is already starting to turn lower to reflect a return in selling pressure without seeing overbought conditions, indicating that bears are eager to return. Similarly stochastic is already on the move south, so XRP price might follow suit as sellers are already back in the game. With that, a dip back to channel support or swing lower around .3100 could take place.
XRP is struggling to regain ground and take advantage of the increasing number of partnerships being struck by Ripple as data revealed that the digital asset might be much lower in market cap than what many believe.
Messari, a cryptocurrency data company, suggested that XRP could be at $6 billion or lower versus $41 billion as noted in CoinMarketCap.com. Messari makes the case that as much as 19.2 billion of that may be “illiquid or subject to significant selling restrictions.”