The cryptocurrency XRP took a 3.2% hit as bearish momentum continues to exert pressure on the market. The dip comes despite a surge in active addresses on October 8.
Ripple [XRP] has been on a downward trajectory, despite positive news over the weekend. The price is retreating towards a crucial level at $0.505.
The report, dated October 6, predicted this drop towards $0.5 due to the presence of a higher timeframe resistance at $0.55. The $0.5 mark serves as a psychological support, and is also close to the 78.6% Fibonacci retracement level.
However, neither the On-Balance Volume (OBV) nor the Relative Strength Index (RSI) are showing signs of bullish recovery. With the RSI standing at 33 and OBV on a decline, the downward momentum appears to be strong.
The absence of buying volume suggests that the $0.5 level may not resist the bearish pressure. In such scenario, the $0.49 level could serve as support, shifting the bias firmly in favor of the sellers.
At the time of writing, XRP was trading at $0.51, but the price was dropping quickly. The past few hours saw a decline in Open Interest, indicating discouraged longs. A 4-hour trading session close below $0.5 would suggest that XRP is likely headed towards $0.49 and lower.
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