Ripple (XRP) – Medium-term uptrend seems to be languishing, and a reversal is loomingPosted on Tuesday, October 18 2022 at 8:55 pm GMT+0000
Ripple (XRP) has been losing ground over the last couple of days after failing to reach the 4-month high of 0.558 posted on September 23rd and eventually destroyed the sequence of higher tops on the daily chart.
The recent setback has sent the price below the Ichimoku lines, which are now on the verge of a bearish crossover, indicating that sellers are ready to steal back the commander seat. Additionally, the oscillators are signaling that the negative impetus is strengthening as the RSI is fading below its moving average and look set to nudge beneath the 50-neutral threshold, while stochastics are exhibiting a sturdy negative charge in the bearish region.
Hence, the major cryptocurrency is expected to soon challenge the Ichimoku cloud ahead of the September 28th bottom of 0.417. A break below the latter could be a tough blow for the coin, as it will confirm a bearish reversal pattern opening the gates for the 161.8% Fibonacci extension level of the latest up-leg at 0.336. Any significant penetration here will see an immediate drop towards the 0.302 – 0.287 support area linking the July and June bottoms.
On the flip side, if the bulls manage to generate some remarkable upside traction near the Ichimoku cloud, they may first face some congestion around the Ichimoku directional lines. By successfully overstepping these lines, they will accelerate toward the tough resistance section encompassing the last two peaks of September 23rd and October 9th around 0.548 – 0.558.
All in all, Ripple’s medium-term uptrend seems to be languishing, as the price recently painted a lower top. Yet, only a decisive close below 0.417 would officially signal a trend reversal.