Why is Ripple (XRP) Price Down Today
XRP failed to hold above $3 and the price action is now turning bearish.
Key Support levels: $2.6, $2, $1.6
Key Resistance levels: $3, $3.3
1. First Major Sign of Weakens for XRP
It was critical for XRP to hold above $3 if there was hope of higher highs. This level was lost today and the price fell to $2.7. This drop has also turned the level at $3 into a key resistance.
The cryptocurrency fell by 11% today which shows sellers are returning. While this is a market-wide correction, the timing was quite unfortunate for XRP as this is turning the chart bearish.
2. Falling Volume Hinted at Correction
The first giveaway that a correction could be coming for XRP was seen on the volume profile. While the price made a higher high above $3, the volume did not do the same. This was an early sign that a bearish divergence was forming which called for caution.
3. Bearish Divergence Detected
The bearish divergence was quite obvious on the volume profile, as seen below. However, the same situation can also be seen on the MACD and RSI momentum indicators. This only strengthens the argument that XRP could have made a local top at $3.4 and a correction may follow now.
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Cryptocurrency charts by TradingView.
