XRPUSD breaks back below 50-day moving average
Ripple/US Dollar Index (XRPUSD) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
XRPUSD ended Saturday at 0.1989 losing $0.0013 (-0.65%) on low volume. Trading $0.0021 higher after the open, Ripple was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on May 9th, XRPUSD lost -8.78% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (XRPUSD as at May 23, 2020):
Saturday's trading range has been $0.0043 (2.15%), that's below the last trading month's daily average range of $0.0105. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XRPUSD.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 0.1973 (S1). The market closed back below the 50-day moving average at 0.1996. The cryptocurrency ran into sellers again today around 0.2023 for the third trading day in a row after having found sellers at 0.2025 in the previous session and at 0.2031 two days ago.
XRP/USD shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 0.2081 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 0.1892 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for XRP/USD. Out of 77 times, XRPUSD closed higher 62.34% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 48.05% with an average market move of 7.06%.
With four out of the other six Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more