The psychological 0.20 level comes to the rescue during the crypto massacre for XRP/USD

June 2, 2020 Editor Ripple 0

  • XRP/USD trades 4.60% lower on Tuesday after a massive crypto sell-off.
  • There were some technical signs before the sell of that some weakness was about to come.

XRP/USD 4-hour chart

Ripple’s XRP has fallen heavily during early hours in the US session on Tuesday. The price managed to print below the psychological 0.20 level but is now trading back above the support zone. 

Looking closer at the chart, there were some early signals that there could be some weakness on the way. The price made a higher high wave and the Relative Strength Index indicator made a lower high wave. This is called a bearish divergence and is a signal that the price rise could be running out of momentum. 

The MACD indicator has also turned bearish as the histogram has dropped below the zero level. The signal lines are still above the mid-zone but there has been a bearish cross and they look like they might cross to the downside soon. 

Lastly, the 200 and 55 moving averages have also been broken. This could be a sign that there is more weakness to come and support levels need to be watched. 

Additional levels