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Ripple (XRP) Price Dives To $0.20, Recovery Presents Sell Opportunity

  • Ripple price is down close to 10% and it even traded close to the $0.2000 support against the US dollar.
  • The price is currently correcting higher, but it is likely to struggle near $0.2180 and $0.2250.
  • There is a key bearish trend line forming with resistance near $0.2250 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The price is likely to resume its decline if it fails to recover above the $0.2250 resistance.

Ripple price is under a lot of pressure against the US Dollar, similar to bitcoin and Ethereum. XRP price remains sell on rallies unless there is a daily close above $0.2350.

Ripple Price Analysis

In the past few sessions, there was a nasty drop in ripple below the $0.2350 and $0.2250 support levels against the US Dollar. Moreover, XRP/USD declined more than 10% and recently tested the main $0.2000 support level.

Finally, a new multi-month low was formed near $0.2003 and the price settled well below the 100 hourly simple moving average. It is currently correcting higher above the $0.2050 and $0.2080 resistance levels.

Besides, the price traded above the 23.6% Fib retracement level of the recent decline from the $0.2349 high to $0.2003 low. However, there are many resistances on the upside, starting with the $0.2180 level.

The 50% Fib retracement level of the recent decline from the $0.2349 high to $0.2003 low is also near the $0.2180 level to act as a resistance. Additionally, there is a key bearish trend line forming with resistance near $0.2250 on the hourly chart of the XRP/USD pair.

Above the trend line resistance, ripple price might attempt a decent recovery. The next key resistance is near the $0.2350 level and the 100 hourly simple moving average.

Therefore, the price must settle above the $0.2350 resistance and the 100 hourly simple moving average to move into a positive zone. Conversely, the price might struggle to climb above $0.2250 and it could resume its decline.

An initial support on the downside is near the $0.2050 level. The main support is near the $0.2000 level, below which there is a risk of a drop towards the $0.1950 support area.

Looking at the chart, ripple price is currently correcting higher, but it is approaching a couple of important resistances near the $0.2180 and $0.2250 level, where sellers are likely to emerge again.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is still placed heavily in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently well near the oversold levels.

Major Support Levels – $0.2050, $0.2020 and $0.2000.

Major Resistance Levels – $0.2150, $0.2180 and $0.2250.

The post Ripple (XRP) Price Dives To $0.20, Recovery Presents Sell Opportunity appeared first on NewsBTC.

NewsBTC , 2019-11-25 04:30:01 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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