XRP Price Quickly Erases Gains Following Binance Futures Addition

On January 6, the XRP price initiated an upward move that caused it to increase by 15 percent. Interestingly, this occurred slightly prior to Binance’s announcement that it has launched leverage futures trading for the XRP/USDT pair, sparking accusations of insider trading. However, they were denied by the Binance CEO. Cryptocurrency trader @JoshMcGruff tweeted out an XRP price chart which shows a rapid price increase followed by a similarly rapid decrease that retraced fully and erased all of the previous price gains.

this chart feels like all of blockhead's tweets$XRP pic.twitter.com/SrSARwOkwT

— Josh McGruff (@JoshMcGruff) January 7, 2020

Continued XRP Decrease

Since the tweet, the XRP price has fallen below the 2600 satoshi level which initiated the upward movement, invalidating the possibility of the double bottom. In addition, it is trading below its 100-hour moving average (MA), which in the short-term has been e decent predictor of the direction of the trend. Therefore, while we could see an upward movement that retests the 2600 area and validates it as resistance, the short-term outlook suggests further price decreases. The daily chart also gives a bearish outlook. The January 6 increase ended once the price retested the 2950 satoshi area which will now likely act as resistance. In addition, the resistance is strengthened by the 50- and 200-day MAs, which are falling and offering close resistance to the price. This suggests the price is likely to decrease to the 2400 satoshi support area.

Long-Term Resistance

In the prior two upward movements, the XRP price initiated rapid increases after breaking out from a long-term descending resistance line. These transpired in December 2017 and September 2018. The current decrease occurred once the price reached the descending resistance line that has been in place since the final upward move of September 2018. In addition, the bullish divergence trend of the three-day RSI was broken and retested as resistance afterward. Therefore, if the XRP price cannot hold on to the 2400 satoshi support area, which seems likely, it could fall to the next support area near 1600 satoshis. To conclude, the XRP price failed to break out above a long-term descending resistance line.