Ripple (XRP) price has struggled for the past two days with the 90-day moving average (MA), failing to stay above the resistance level each time it surges above it.
Following the market correction on Sept 2, the Dow Jones Industrial Average, Nasdaq, and the S&P 500 have all reached record highs, but XRP’s price fell by 27.8% from $0.304 to $0.2194 as of Sept 24. Throughout this period, XRP has struggled to surpass both the 30-day simple moving average (MA) and the 90-day MA—indicating that the 30-day MA is a strong resistance level, not to mention the 90-day MA. For four consecutive days, XRP has struggled to sit above the 30-day MA resistance level.
The 90-day was a critical support level since XRP’s price plunge from Sept 2. It rallies along with the support level. On Sept. 17, it struggled to test the 30-day MA, but it even didn’t touch the line. Then the XRP price plunged again. Both the 30-day MA and the 90-day MA became resistance levels. On Sept. 24 and 25, XRP’s price struggled to test the 90-day MA resistance level and failed. Then the price consolidated below the 90-day MA. When the price action faced a 30-day MA of resistance level, the XRP price dipped from Sept. 30 to Oct. 3.
On Oct. 4, the XRP surged by 6.6% and stood on the 30-day MA resistance level, as shown on the purple line in the chart below.
Source: TradingView, Ripple Daily Chart
Today it was ready to test 90-day MA, as a strong resistance level, but pulled back. XRP became weaker and may continue to see its price dip. But the 30-day MA at the price of $0.2413 could be a support level now. XRP could consolidate below 90-day MA and above 30-day MA as well.
Today, the overall crypto market has seen a bit of an uptick. Bitcoin’s price action is challenging the 90-day MA as well, and not surpass and stand on 90-day MA, the critical resistance level for Bitcoin.
Source: TradingView, Bitcoin Daily Chart
If the Bitcoin price drops, we can expect Ripple’s (XRP) price to end up in the same bearish path and plunge even more.
Image source: Shutterstock