The XRP/USD was trading in the red at 0.3441 at the time of writing. The bias remains bearish, so more declines are favored. Bitcoin’s short-term drop forced the altcoins to drop as well. Temporary rebounds could bring us new short opportunities.
Ripple dropped by 8.28% from Tuesday’s high of 0.3730 to 0.3421, today’s low. Technically, after its massive drop, the altcoin could try to come back to test and retest the immediate resistance levels before dropping deeper.
XRP/USD Down Channel!
As you can see on the H1 chart, XRP/USD dropped within a down-channel pattern. Now, it’s trapped between the 0.3481 and 0.3421 levels. It may challenge the 0.3440 weekly pivot point, which represents a downside target and obstacle.
As long as it stays within the down channel pattern, the altcoin could approach and reach new lows.
A new lower low activates a further drop at least towards 0.3360.
Staying above 0.3421 and making a valid breakout above 0.3481 and through the downtrend line may announce that the retreat ended and that buyers could take the lead.
The material has been provided by InstaForex Company – www.instaforex.com