Ripple Consolidates Above $0.80 as Buyers Attempt to Avert another Downtrend
The price of Ripple (XRP) remains in a downward correction after buyers failed to keep it above $1.00 resistance.
Since December 29, XRP has fallen and consolidated above the $0.80 support. Ripple's upside has been capped below the high of $0.85. Over the past week, XRP/USD has traded marginally between $0.80 and $0.85.
Neither the bulls nor the bears have the upper hand. If the bears gain the upper hand and break the current support, Ripple will retest the previous low at $0.76. Further downside to the low at $0.57 is likely if support at $0.76 is also broken. On the other hand, if buyers gain the upper hand and keep the XRP price above the moving averages or resistance at $1.00, it would signal the resumption of the uptrend. This would put an end to a downward correction.
Ripple indicator analysis
Ripple has fallen to level 42 on the Relative Strength Index for the 14 period. The altcoin is in the downtrend zone and can fall. The price bars are below the moving averages. This determines the extent of the downtrend. If the altcoin fails at the $0.85 resistance, the selling pressure will continue until the next support. Currently, the cryptocurrency price is below the 20% range of the daily stochastic. The market has reached the oversold zone.
Major Resistance Levels - $1.95 and $2.0
Major Support Levels - $0.80 and $0.60
What is the next move for Ripple?
XRP price bars are below the moving averages. This suggests that there is a possibility of further downside. Meanwhile, the downtrend from November 28 has shown a candlestick testing the 78.25% Fibonacci retracement level. The retracement suggests that the XRP price will fall to the 1.272 Fibonacci Extension level or $0.76.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing.
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