ANALYSIS : Ripple market overview: XRP/USD lower low pattern testing $0.3100 support
- XRP/USD extended the losses under $0.31 during Asian trading hours on Tuesday.
- Ripple needs to stay above 0.3100 and possibly recover above $0.3200 to come out of the danger zone.
Ripple is in the middle of a gains trimming activity following the rejection from highs around $0.3415. Recovery from lows slightly above $0.28 has proved to be an uphill task especially with the return of the bears this week.
Expected support at $0.3200 failed to cushion the drop as the bears had gotten a kick from the slide below the moving average. XRP extended the losses under $0.31 during Asian trading hours on Tuesday. A low formed at $0.3089 gave way for an ongoing reversal towards $0.3150.
At press time, the price is dancing at $0.3120 with the weak bullish momentum supported by the slightly positive technical levels. The Moving Average Convergence Divergence (MACD) at -0.001 beginning to slope gradually upwards. However, the sellers will remain in control until we see a larger divergence to the upside.
The Relative Strength Index (RSI) has recovered from the oversold levels but the upside movement is capped at 40. Ranging movement means that XRP is likely to start trending sideways in the coming sessions. Ripple needs to stay above 0.3100 and possibly recover above $0.3200 to come out of the danger zone between $0.30 and $0.31.