Ripple Slumps to $0.81 Low, Risks Further Selling Pressure

The price of Ripple (XRP) has fallen to a low of $0.81 as buyers fail to keep the price above the high of $1.00. The XRP price has fallen below its moving averages. This means that the cryptocurrency is under further selling pressure.

In the meantime, the altcoin is trading between $0.76 and $1.00. If the bears break the support at $0.76 to the downside, the market will fall to a low of $0.57. The support at $0.57 is the previous low of the December 4 drop. On the upside, the bulls have the difficult task of pushing XRP to the previous highs. Buyers need to break above the moving averages or resistance at $1.00 to resume the uptrend. If the buyers are successful, XRP will reach the previous highs of $1.10 and $1.30. 

Ripple indicator analysis

XRP has fallen to the 45 level of the Relative Strength Index for the 14 period. The cryptocurrency is still in the downward zone and there is a risk that it will face further selling pressure. XRP’s price is below the 21-day moving average and the 50-day moving average line. This makes the altcoin vulnerable to further selling pressure. Ripple is above the 25% area of the daily stochastic. The market has resumed its bullish momentum.

Technical indicators:  

Major Resistance Levels – $1.95 and $2.0

Major Support Levels – $0.80 and $0.60

What is the next move for Ripple?

Currently, Ripple is still in a downward correction as the altcoin is rejected from its recent high. Meanwhile, the downtrend from December 28 has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that XRP will fall to the 1.272 Fibonacci extension level or the $0.76 level. The price action shows that XRP is fluctuating 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