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XRP has been trading on a short-term uptrend
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The cryptocurrency is facing pressure at the $0.40 resistance
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Watch for the daily candlestick close for confirmation of a bearish move
Ripple (XRP/USD) looked poised for a breakout at $0.40. The cryptocurrency has been trading on a short-term ascending channel, giving hopes that a breakout was on the horizon. Investors have remained hopeful as Ripple’s case with the SEC enters the final stages. With little cryptocurrency news coming up to reassure XRP buyers, the token is developing weaknesses.
Trading at $0.38 as of press time, XRP had slightly broken below the ascending trendline. The daily candlestick needs to close below the trendline to confirm a bearish momentum that could take XRP back to $0.30. Longtime CNBC host JIM Cramer has, however, commented negatively about XRP.
According to Cramer, most cryptocurrencies are still overvalued. Any bullish enthusiast may discredit the views, given that most tokens are trading sharply low from their all-time highs. However, back in June, Cramer predicted further declines in crypto prices amid calls for sustained gains. The CNBC host claims that XRP, Dogecoin, and Cardano could crash to zero.
While comments by Cramer could be a bit harsh, it is also true that crypto markets are yet to become bullish. XRP has been relying on speculations of case settlement. The lack of a positive catalyst has thus been posing a recovery challenge.
XRP attempts to break below the ascending trendline
From the daily chart outlook, XRP stalled as it hit $0.4. weakness is now developing, with the MACD indicator showing a slowing momentum. Similarly, the RSI has shifted below the midpoint, likely suggesting buyer exhaustion.
What next for XRP?
If XRP price confirms a break below the short-term descending trendline, the bear pressure will heighten. Bears will want to revisit the support at $0.30 unless positive developments in the SEC case pop up.
On the flip side, bulls may attempt to force bears at the resistance, forcing a candlestick close above the trendline. That could prolong consolidation at the resistance for a potential breakout.