XRP, the fourth largest cryptocurrency in the market has not had the best of years. Beginning the year in good spirit with some optimistic price action, it was soon overshadowed by Ethereum and later Bitcoin and its erratic movement. Even with the king coin losing 50 percent of its value, and beginning the second quarter of 2020 in recovery mode, XRP did not perform well. In fact, in the previous quarter, it decreased its market dominance while Ethereum and Bitcoin made massive strides.
Looking at the short term price for XRP, the prospects are not bright. It slipped to as low as $0.188 on 16 July, a recovery is in the offing, but is unlikely to push the price as high as $0.21, where it was at the beginning of the previous week. Since breaking out of the falling wedge on 16 July when the price fell from $0.197 to $0.185, the altcoin is now trending with an ascending triangle.
Mounting increasing lows but a relatively stable high at $0.195, the price is struggling to increase. The altcoin had increasing lows at $0.19, $0.191 and $0.193, but failed to push above. When the price did breakout from $0.194 to $0.196, it was immediately pushed down a few hours later, pushing back under the base at $0.194.
Source: XRPUSD via Trading View
Resistance levels have pushed the price down to $0.197, $0.198 and $0.199 respectively, but the current trading price of $0.194 is still a far way off, and the triangle will prevent any moves above the base. The current trading volume for XRP has also decreased over the past few days. As per Coinmarketcap, the 24-hour trade volume at the end of the first week of July was $1.8 billion and in the past few days, it has decreased to less than $1 billion.
The Chaikin Money Flow indicator is currently at 0.02, indicating XRP is seeing more money moved out than injected in. The CMF has decrease from as high as 0.4 on July 13, as the price dropped from $0.204 to $0.189.
XRP is unlikely to move above the aforementioned resistance levels, especially if volume decreases and the CMF falls. If there is a breakout above $0.195, XRP is unlikely to go as high as $0.208, the highest resistance level in the short term. A push below the same would end up causing more sideways movement between the support at $0.197 to $0.204, and form a broad inverted head and shoulders, with the head at the low of $0.189.
