Bearish Clouds Hovers Over This Altcoin—Is This the Beginning of a Fresh Descending Trend?

The post Bearish Clouds Hovers Over This Altcoin—Is This the Beginning of a Fresh Descending Trend? appeared first on Coinpedia Fintech News

While the bitcoin price has soared beyond the pivotal resistance, the altcoins have also made a significant move towards the north. One such altcoin is displaying the possibility of a bearish breakdown, regardless of the prevailing bullish trend. The XRP price is not displaying any strong moves during the current market state. It also displays the dominance of bears over bulls, suggesting the price is experiencing extreme upward pressure.

In such a case, will the price trigger a fresh bearish reversal?

In the long term, the XRP price is trading within an ascending parallel channel, and for the past few weeks, the price has been trading diagonally. Along with a dropped volume, the dropped activity of the bulls is raising more concern. Moreover, the bears are successfully mounting enough pressure at frequent intervals, which has made it an uphill battle for the bulls.

The XRP price in the daily timeframe is trading within a descending triangle, and if the current trend continues, then a nice downward movement towards the lower support below $0.5 could be imminent. The trend has been losing ground over time and is believed to reach lower support in a day or two. However, the price is not expected to break below the support level at once but to hover above the level until it reaches the edge of the consolidation.

Once the XRP price breaks below the area, the lower support does not appear to be strong, which may weaken the bulls. This could lead to a significant price drain towards the lower pivotal support below $0.5 at $0.48 or lower. However, after entering the liquidity zone, the price is believed to rebound, but until then, one has to wait for a clear breakdown to happen first.