Ripple Price Analysis: XRP/USD Remains in Downtrend

Ripple price faced an increased selling pressure recently and declined below the $0.6500 and $0.6350 support levels. XRP to USD is now well below $0.6000 and it could test $0.5000.

There were heavy declines noted in the cryptocurrency market during the past few days. Bitcoin price declined and broke the $6,500 support level, and Ethereum price almost traded close to the $500 level (data feed by coinmarketcap). Similarly, there were bearish pressures on ripple as XRP price declined sharply and settled below $0.6000.

Ripple Price Analysis and Forecast:

• Ripple price broke a key pivot support at $0.6350 against the US Dollar.
• There is a major declining channel forming with resistance at $0.6100 on the 4-hours chart of XRP/USD.
• The pair remains in a downtrend and it could well decline below the $0.5000 level in the near term.

Looking at the chart below, XRP/USD slowly and steadily declined from the $0.7400 swing high. During the decline, there were a few corrections, but upsides were capped by $0.7000 and $0.6500.

The recent drop was nasty as the price broke a key pivot support at $0.6350 and even settled well below the $0.6000 level. There was also a close below the 55 simple moving average (orange, 4-hour) and the 100 SMA (green).

The price traded as low as $0.5434 and is currently following a major declining channel with resistance at $0.6100 on the 4-hours chart. Ripple price may correct today a few points towards the 23.6% Fib retracement level of the last wave from the $0.7070 high to $0.5430 low.

However, the channel resistance at $0.6100 and the 38.2% Fib retracement level of the last wave from the $0.7070 high to $0.5430 low are likely to prevent rallies.

Only a close above $0.6100, 55 SMA, and then $0.6350 pivot level could open the doors for a larger upward wave. On the downside, ripple buyers may appear near $0.5000, below which there is an open space up to $0.4600.

Looking at the other major cryptocurrencies, bitcoin price is under pressure and it could test the $5,500 and $5,000 support levels if sellers remain in control. Other best performing cryptocurrency such as ICX, ADA, STRAT, LTC, Neo, Augur, Tron, WTC, WAN, Polymath also faced an increased selling pressure.

The overall market sentiment is bearish with chances of more declines in bitcoin, ETH, XRP, ADA and BCH in the near term.