Yesterday, the price of Ripple (XRP) was on the verge of falling below $0.38 support, but the bulls fought back. Sellers intended to push XRP to the previous low at $0.33.
Nonetheless, the long tail of the May 12 candles suggests that the previous low at $0.33 indicates strong buying at lower levels. Today, the altcoin rallied above the $0.38 support. Should XRP rally to the upside, the altcoin is likely to encounter resistance at the high of $0.46 or the 21-day moving average. Nonetheless, XRP will rally to the high of $0.65 if it clears the first hurdle at $0.46. Conversely, if the upward movement fails, the bears will try to push the cryptocurrency below the support of $0.38. Otherwise, the movement will remain in the range between $0.38 and $0.46. At the time of writing, XRP/USD is trading at $0.39.
Ripple indicator analysis
Ripple is at level 33 on the Relative Strength Index for period 14. The RSI is horizontally flat, indicating the sideways trend. The 21-day line SMA and the 50-day line SMA are sloping south, indicating a downtrend. The 21-day moving average line acts as a resistance line for the price bars. XRP is below the 40% area of the daily stochastic. The bearish momentum is unstable.
Technical indicators:
Major Resistance Levels – $0.80 and $1.00
Major Support Levels – $0.60 and $0.40
What is the next move for Ripple?
Ripple is in a sideways movement, but sellers are trying to push the altcoin below the $0.38 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. The price action shows that XRP continued its movement above the $0.38 support.
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: https://coinidol.com/ripple-recovers-0-38/