- XRP price is set to breach the 200-DMA, with a test of May lows likely.
- Ripple confirmed a symmetrical triangle breakdown on the daily chart.
- The path of least resistance appears to down despite the tepid bounce.
XRP price is licking its wounds so far this Saturday, having reached the lowest in three months at $0.7691 on Friday.
Bulls are making recovery attempts across the crypto board, with the market sentiment seen improving slightly, in anticipation of the weekend love returning. Bitcoin has recaptured the $36,000 level after falling to just above $35,000 on Friday’s American afternoon.
The no.7 most-traded digital asset is also following a similar price movement. However, the further upside attempts appear elusive, despite the long-dragged SEC V. RIPPLE lawsuit.
The court denied the Securities Exchange Commission’s (SEC) request to search for records of Ripple’s General Counsel and Deputy General Counsel for being privileged communications.
Wednesday’s Fed’s hawkish surprise is likely to have a lasting impact across the asset classes.
XRP price looks south amid symmetrical triangle breakdown
The XRP price confirmed a downside breakout from a month-long symmetrical triangle formation on the daily chart a day before, as the bears yielded a daily closing below the rising trendline support, then at $0.8487.
A bearish break was inevitable, as the price has been forming lower highs on the said time frame.
Further, the Relative Strength Index (RSI) continues to trade listlessly below the midline, backing the downbeat mood around Ripple.
Therefore, a sustained break below Friday’s low at $0.7691 could expose the 200-Daily Moving Average (DMA) at $0.7277.
The May 23 low of $0.6509 could be put to test on a daily closing below the critical 200-DMA support.
XRP/USD: Daily chart
On the upside, the road to recovery could be challenged by the triangle support now resistance at $0.8562.
The buyers will then look to regain the $0.8600 round number, above which the triangle resistance at $0.8869.
A convincing break above the last is likely to invalidate the symmetrical triangle breakdown.