On the 4-hour chart, Ripple (XRP) is trading at $0.21 in a sideways move. The bulls are having the intention of revisiting the previous high at $0.24 resistance. This is possible if the resistance levels of $0.22 and $0.23 are breached. In retrospect, the $0.24 resistance was formerly supported, where the price consolidated above for two weeks before a breakdown.
The breakdown was to a low of $0.20. At this low, the price is consolidating between $0.20 and $0.21. A break down will compel the price to reach a low of $0.17. On the upside, a relief rally will reach a high of $0.22.
Ripple May Sustain Price above $0.20 Support Level
Presently, on the daily chart, the market is consolidating above $0.20 price level. On March 8, the XRP has a breakdown to the low of $0.20. It is unclear how long the price will consolidate before a decisive direction. When the price is in a period of consolidation, it is pretty challenging to determine the course of the market. Most times, the price will follow the direction of the primary trend.
Key Levels to Watch
Key Resistance Zones: $0.35, $0.40, $0.45
Key Support Zones: $0.25, $0.20, $0.15
–The Stochastic Indicator:
Presently, Ripple is in the oversold region below 20% range of the daily stochastic. This implies that buyers are likely to emerge in the oversold region of the market. Therefore in the current consolidation, Ripple is likely to have an upward movement to the recent high. This is on the condition that buyers emerge.
– The Relative Strength Index (RSI) Indicator:–
Nonetheless, the Relative Strength Index level 38 is indicating that Ripple is in the downtrend zone and at the same time below the centerline 50. It means the market may fall.
XRP/USD Bitfinex 4-Hour Chart
XRP/USD Bitfinex 1-Day Chart
Author: Mustapha Azeez