- Ripple is in a run lower with sellers in control.
- Price action dipped below the monthly R3 resistance.
- Choppy price action ahead with several technical elements coming together.
Ripple (XRP) has been on a downward trajectory since August 15. Price action could not get back up there, and since then prices have shown lower highs. In that push to the downside, Ripple could not hold price-action above the purple descending trend line. The trend line got chopped up several times and looks to have served its purpose for now.
The following support that failed comes from the monthly R3 resistance level at $1.16. Price action dipped below this support this weekend and even looks to be having difficulties in holding this position.
Two supportive technical elements are being chopped up with sellers in control
Buyers now can only look for the following points of interest to get in for a long position, but price action will be limited by the formation of that blue descending trend line. That line will be critical to watch if sellers are still very much in control, as they will add more short positions to defend that descending trend line. The level of interest for both is around $1.09 and $1.05 – a supportive belt that showed its importance already multiple times in the past on August 14, August 18 and August 27.
Expect this to become a battle between buyers and sellers to see who will take over price action or if sellers can stay in control. Short-term buyers could push price action back up, but the blue descending trend line might be too heavy to overcome. Sellers will flock in to add more short positions and try to break $1.05 to the downside.
A dip lower will bring us toward $0.88, where both the 55 and 200-day Simple Moving Average (SMA) are very close to each other, and the monthly R1 resistance level will support the price action. Buyers will be happy to get in at these levels.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.