Ripple XRP Price Analysis: XRP will do well to stay above the 38.2% Fibonacci zone at 0.1819
- XRP has dropped 1.28% on Tuesday in line with the broader crypto market weakness.
- The price looks set to head toward an important support zone over the next few sessions.
XRP/USD daily chart
Ripple has pushed lower on Tuesday and hovers just under the 0.20 psychological resistance zone. It seems if the price continues this current bearish theme it will hit an important resistance zone marked in red on the chart below. The support level was used back on 18th December 2019 and helped the price moved higher after a considerable downtrend. The 0.1819 support also matches up very closely with the 38.2% Fibonacci retracement zone and this is one of the more reliable Fib numbers.
Looking at some of the other technical indicators and they are not supporting a recovery either. The price is still under the 200 Simple Moving Average which is a bearish signal. The MACD indicator is under the zero line but more importantly, the signal lines have moved lower too. Lastly, the Relative Strength Index indicator has dropped below the 50 mid-line and looks to be heading toward a more oversold zone.
If the red support line breaks it could be a confirmatory signal that a new downtrend is about to begin as the market would have made a lower high lower low pattern for the first time in 74 trading days.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
