Ripple (XRP) shrinks as Bears Overwhelm Bulls

Ripple (XRP) shrinks as Bears Overwhelm Bulls

Key Resistance Levels: $0.30, $0.40, $0.45
Key Support Levels: $0.25, $0.20, $0.15

XRP/USD Long-term Trend: Bearish
Since on February 15, Ripple reached a high of $0.34. Analysts think that a break above $0.34 will compel the coin to reach a high of $0.40. The bottom line is that XRP has been overbought at  $0.34 since on February 15. Therefore the upward movement of Ripple is doubtful. Short term traders ought to have booked their profits before the downward move.

In the overbought region, buyers are not available to push the coin upward. However, sellers emerge in the region to push the coin downward. On the downside, Ripple has fallen to a low of $0.27. The price level has been a historical price for some time. The price level may hold or be broken

XRP/USD – Daily Chart

Daily Chart Indicators Reading:
Today, Ripple is trading at level 50 of the Relative Strength index. The RSI period 14 was previously level 80 when Ripple was overbought. The 21-day SMA has been broken by price. The selling pressure will continue if the price breaks below the SMAs.

XRP/USD Medium-term Trend: Bearish
On the 4-hour chart, the downward move was symbolic. The price fell to a low of $0.28. Then the bulls pulled back to retest the high of $0.30. After the retest at $0.30, the price falls again to a low of $0.26. The coin is now fluctuating above the current support.

XRP/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The daily stochastic is above the 20% range. That means Ripple is now in bullish momentum. Ripple fell to a low of $0.27, the stochastic was in the oversold region of the market. In that region, buyers emerge who pushes the coin higher.

General Outlook for Ripple (XRP)
Ripple has fallen to the oversold region of the market. The coin is likely to rise as buyers emerge. As Ripple rises it may face stiff opposition at the $0.31 price level. In the long run, the coin may be compelled to a range-bound movement.

Ripple (XRP) Trade Signal
Instrument: XRPUSD
Order: Buy
Entry price: $0.27
Stop: $0.25
Target: $0.31

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.