Ripple (XRP) – Sell-off still has room to runPosted on Tuesday, May 10 2022 at 9:47 pm GMT+0000
Payment network Ripple (XRP) fell aggressively over the past 40 days, reaching levels last seen in March 2021, extending the structure of lower highs and lower lows initiated from the November peak.
The strong negative charge exhibited by the Ichimoku directional lines is reflecting the bearish forces’ dominance. The oscillators however are transmitting mixed messages in directional impetus. The MACD and the TSI are strengthening their bearish moves in the negative waters while the IMI has been moving against the market direction since the beginning of the month, displaying a kind of a bullish divergence, suggesting that the bears may soon stop for a breather.
However, the sell-off still has some room to run, amid the absence of critical pivot points prior to the March 2021 lows of 0.422. Furthermore, if that key support failed to neutralize bearish pressures, the bears will target January 2021 inside swing high of 0.372.
Otherwise, whenever buyers re-emerge, they will face a rocky path, as many major obstacles may quickly try to block the way for any serious recovery attempts. The Tenkan-sen line and the April 30th inside swing low at 0.566 would act as the first defensive border. Following any penetration here the spotlight will turn towards the Kijun-sen line and the May 5th high at 0.634 and 0.657 respectively. Triumphing past these barriers, the price could then climb to the April 16th peak of 0.799.
In summary, the outlook for Ripple is looking gloomy at the moment. And despite Tuesday’s push for recovery, odds for additional declines are still elevated. Only a jump beyond 0.566 could raise some hopes for a meaningful recovery.