FxWirePro: Ripple tumbles after bearish crossovers, hits 4-week low on speculative news, can it be a buy on strong support?

Ripple (XRPUSD) price has been tumbling on bearish SMA and MACD crossovers, consequently bears managed to breach below strong supports at 0.8897 and 0.7347 levels (refer 4H chart).

While both leading oscillators (RSI & stochastic curves) confirm the strength in the downtrend and bearish momentum by showing downward convergence.

Both trend indicators signal downswings to prolong further as 7SMA crosses below 21SMA, while MACD also shows bearish crossover.

Same has been the case on daily plotting, shooting star has occurred at 0.9440 levels to signal weakness, consequently, this bearish pattern has plummeted price slumps below EMAs. Same has been the case with momentum and trend analysis on this timeframe as well. Both leading and lagging indicators are in favor of bears. Hence, we are seeing 4-weeks’ lows at 0.7322 levels.

Well, the majority of today’s price decline is owing to the general weakness in the cryptocurrency market sentiments.

Amid Japanese and US regulators shutting down and cracking down on a few crypto exchanges, Ripple has been a particularly poor performer this week after rumors that it would be added to the Coinbase exchange turned out to be false.

For now, the pair has taken a strong support at 0.7322 levels to show fake jump upto the current 0.7680 levels, but we see no traces of any bullish indications on technical grounds, instead, any abrupt rallies could be perceived as deceptive upswings that could be utilized to short for the next target upto 0.7015 levels.

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