Bottom of Trading Channel Violated at 25% Stochastic - Not Good

The XRP price has closed a full candle below the bottom of the parallel trading channel. The previous point that it poked through the bottom was just a wick. So this is significant. While this downward movement gains momentum, notice that the stochastic is just at 25%. That's low, but we are clearly not in oversold territory. That means there could be more downward movement beyond where we are. I had mentioned in the last post that whenever you see the stochastic move up towards the "overbought" territory at or above the 80% line, but price doesn't take a big jump upwards that matches the stoch lines, this is an immediate indication of a continuation of the downward momentum. The same holds in reverse during a bullish trend.

We've already broken down to 0.20, and XRP looks like it is being tractor-beamed down to that Gray 2.618 fib circle line. I think we need to be mentally ready for the possibility of seeing a more aggressive precipitous drop than what we first thought.

Comments?