Ripple is still in selloff mode but the slide seems to be slowing as price approaches this area of interest. This previously held as resistance before the strong upside break in September that turned it into support.
RSI is already in the oversold region to confirm that sellers are exhausted and might be due to let buyers take over. The oscillator would need to climb out of the oversold region to indicate a return in bullish momentum, though.
The 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. Its crossover attempt seems to have failed, which might only draw more sellers in from here.
If the area of interest holds, Ripple could recover to the nearby .4500 support turned resistance or to the tops at .5500. A break below the current levels, however, could expose it to a drop to the .2500 major support.
Although XRP is also vulnerable to the current industry rout, it seems to be one of the more resilient altcoins these days. After all, it has just overtaken ethereum in terms of market cap and might also be due to surpass bitcoin soon.
Note that Ripple continues to strike partnerships left and right, adding more financial institutions under its belt that it could soon transition to using actual XRP on the xRapid platform. By then, this could ramp up volumes and activity enough to sustain more price gains.
Still, the industry might need a big positive catalyst in order to bottom out, otherwise bearish pressure could keep accelerating. Still, it’s worth noting that Ripple is on its longest stretch as the world’s top two cryptocurrency so there could be reason for bulls to keep price supported.