The trendline that begins from the low of 3858.00 back on 13th March is now being tested once again. The 4-hour chart below shows the price has tested the uptrend at least three times and now we could possibly see a break.
This move lower over the last couple of sessions has been backed by some decent volume giving us clues that it could be the real deal. In the way of the potential down move is the 200 simple moving average (SMA). The SMA often provides some support when tested as you can see in mid-April.
The second-largest digital asset dropped below a critical $200.00 and touched the intraday low of $196.33. At the time of writing, the second-largest digital asset is trading at $198.69, down 5% since the beginning of the day.
The sell-off is caused by technical factors and general sentiments on the market where Bitcoin touched the ground below $9,000, while XRP settled under $0.2000.
XRP/USD touched the low at $0.1890 amid widespread sell-off on the cryptocurrency market. The third-largest digital asset is changing hands at $0.1935, down 4% since the beginning of the day.
A sustainable move below $0.2000 creates a bearish short-term picture and signals that XRP may continue sliding down with the next major support at $0.1780, which is the lowest level since May 10.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.