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Ripple May Resume Fresh Decline as It Faces Resistance at $0.32


coinidol.com 05 July 2022 12:48, UTC
Reading time: ~2 m

The price of Ripple (XRP) is still in a downward correction after the recent drop to a low of $0.30 on July 1. In the latest price action, the bulls failed to break the high at $0.38 or the 50-day line SMA.

The bears sold off in the recent rally, hence the drop to the low of $0.30. In the last five days, XRP has regained bullish momentum as the cryptocurrency holds above the $0.30 low. 

Today, XRP has risen to the high of $0.32, but the upside is encountering rejection at the recent high. The upward movement is limited by the 21-day line SMA. A break above the 21-day line SMA will accelerate the upward movement. The coin will rally to the high at $0.38 or above the 50-day line SMA. The bullish momentum will extend to the high of $0.46. On the other hand, if the bulls fail to break the 21-day line SMA, XRP will be forced to trade in a narrow range between $0.30 and $0.32.

Ripple indicator analysis

Ripple has fallen to the 40 level of the Relative Strength Index for the 14 period. XRP is in the downtrend zone and is capable of further decline. The price is below the 30% area of the daily stochastic. The cryptocurrency is in a bearish momentum. Moreover, the price bars of the cryptocurrency are below the moving averages, which indicates a further decline.

Technical indicators:  

Major Resistance Levels - $0.80 and $1.00

Major Support Levels - $0.40 and $0.20

What is the next move for Ripple?

Ripple is vulnerable to price declines as it faces rejection at the 21-day line SMA. Selling pressure will continue if the price falls below the $0.30 support. Meanwhile, on May 12 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that XRP will fall to the level of 1.272 Fibonacci extension or $0.25. 

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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