Fear amongst XRP traders increases as the potential for an XRP downtrend becomes almost imminent. As a descending triangle forms in the XRP global charts, Ripple turns out to lag behind other cryptocurrencies like Bitcoin and Ethereum.
XRP continued to exhibit a descending parallel channel pattern since October 9, 2021, which designates a break from the uptrend pattern established on July 20, 2021.
The XRP 50-day Simple Moving Average and the Fibonacci Retracement level meet at the $1.07 mark, signifying the potential support level if the XRP will correct downwards. For traders to avoid losses, the XRP price must hold above this line by the end of the day.
Other indexes, such as the Arms Index, signify a selling sentiment rather than buying intentions amongst the XRP traders. The rising number of sellers in the market can make it more difficult for buyers to lift the prices above their resistance level.
Furthermore, a larger selling power might incentivize XRP holders to sell their positions to $0.96, the 50% Fibonacci retracement level.
Suppose the off-chance buyers managed to reverse the inevitable downwards correction. In that case, the XRP price should meet with the 21-day SMA at $1.10, potentially establishing a consolidating pattern within the $1.13 previous resistance area.
Furthermore, the only indicator signifying a potential increase is the composite index, an index used to measure the overall market performance during a specific time.
The XRP composite index moved above its moving averages, which could signify a sustained move upwards rather than the downward correction.