The price of Ripple (XRP) is moving above the $0.75 support, with the bears retesting the $0.76 support while the bulls are buying the dips. After each retest, the candlesticks show outstanding long tails above the current support.
The long tails indicate that the $0.75 and $0.76 price levels are strong buying support. XRP/USD will fluctuate between the $0.75 and $1.00 price levels if the current support holds. The high at $1.00 is the overhead resistance where upside moves have already been staved off twice. If buyers are able to overcome the overhead resistance, XRP will rise to the high at $1.41. On the other hand, if the bears manage to break the support at $0.75, XRP will fall to the low at $0.51.
Ripple indicator analysis
Ripple is at level 34 of the Relative Strength Index for period 14, which is due to the recent price decline as the altcoin approaches the oversold territory. The cryptocurrency is not out of the downward correction yet, as it is vulnerable to a downward movement. The cryptocurrency is above the 25% range of the daily stochastic. The stochastic bands on the daily chart are moving above the current range. The bullish momentum is volatile as the price fluctuates.
Major Resistance Levels – $1.95 and $2.0
Major Support Levels – $0.80 and $0.60
What is the next move for Ripple?
Ripple is in a downtrend, but the downtrend has reached its bearish exhaustion. Meanwhile, the downtrend tested the 78.25% Fibonacci retracement level through a candlestick on December 30. The retracement suggests that the XRP price will fall to the Fibonacci extension level of 1.272 or $0.74. The price action shows that XRP is consolidating above the 1.272 Fibonacci extension.
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.
Source: Read Full Article