- Ripple intends to contain losses above the key support at $0.20.
- Immediately supporting the price is the 50 SMA in the 4-hour timeframe.
Ripple keeps dancing at the edge of the cliff following a recent rejection at $0.225. The losses come in tandem with declines witnessed across the board in the last 24 hours. The market leader, Bitcoin is also grinding lower towards $7,700 while Ethereum is struggling to hold the support at $136.
The recovery on Monday this week was significant enough to push XRP past the hurdle at $0.20. However, the bulls lost their mojo and Ripple fell into a classical reversal smashing through the tentative support at $0.21.
The ongoing retracement is supported by the worsening technical picture. The Moving Average Convergence Divergence (MACD) is almost crossing into the negative territory. The wide bearish cross is flashing bright red signals likely to encourage the sellers to increase their entries.
Meanwhile, immediate support is expected at the 50 Simple Moving Average (SMA) on the 4-hour chart. The longer-term 100 SMA support will come in handy if the crucial support at $0.20 is penetrated. Although the accelerated trendline support has been broken, the main trendline support is still intact and will come in handy later.