On the 4-hour chart, Ripple XRP is correcting upward. The market is rising and has reached a high of $0.18588. On April 6, XRP rebounded and reached a high of $0.20500. According to the daily stochastic, the market reached the overbought region. This resulted in the emergence of sellers to push prices downward.
The bulls retested the $0.20500 resistance twice and the $0.1962 resistance before the final downward move. The price action also resulted in the formation of a bearish double top.
This price pattern is actually responsible for the downtrend. On the downside, the selling pressure may likely continue. The bears are attempting to break below the trend line. On the upside, the bulls have to first defend the $0.18 support level before an upward move can resume. A break above $0.1880 and $0.19 is possible. This will propel the bulls to break the $0.20 resistance.
XRP is struggling above $0.18 support
On the daily chart, the bulls attempted the resistance at $0.20 to break it. The market fell after two unsuccessful attempts at the resistance. The coin is consolidating above $0.18 support. It is unclear if the $0.18 support will hold. Ripple will resume an upward move if the current support holds. Conversely, the bears may break the current support and the market will fall to the low of either $0.163 or $0.17.
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
The pair is above 40% range of the daily stochastic. The coin is in a bullish momentum but the momentum is unstable. The price action is showing some bullish signals. The EMAs are gradually sloping upward but it is currently facing resistance at $0.20
The Relative Strength Index (RSI) Indicator
Ripple has fallen to level 48 of the Relative Strength index. It is now in the downtrend zone and below the centerline 50. The pair may likely further depreciate. The 12-day EMA and the 26-day EMA are providing support for the coin. A break below the EMAs will suggest a bearish signals.
Author: Mustapha Azeez