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  • Ripple price is holding a couple of important supports near $0.2180 and $0.2150 against the US dollar.
  • The price is currently facing resistance near the $0.2260 and $0.2300 levels.
  • There is a major bearish trend line forming with resistance near $0.2260 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair needs to climb above the $0.2260 and $0.2300 resistance levels to continue higher.

Ripple price is struggling to gain bullish momentum against the US Dollar and bitcoin. XRP price might revisit the $0.2180 or $0.2150 support before it climbs higher.

Ripple Price Analysis

After forming a local top near the $0.2320 level, ripple started a fresh decline against the US Dollar. XRP price declined below the $0.2250 support level and the 100 hourly simple moving average.

Moreover, the price broke the $0.2200 support and tested the $0.2180 support zone. A low was formed near the $0.2188 and the price recently started an upside correction.

There was a break above the $0.2220 resistance area. Besides, the price climbed above the 23.6% Fib retracement level of the latest decline from the $0.2325 high to $0.2188 low.

However, the price is facing a lot of hurdles near the $0.2250 and $0.2260 resistance levels. It seems like the 50% Fib retracement level of the latest decline from the $0.2325 high to $0.2188 low is acting as a resistance.

More importantly, there is a major bearish trend line forming with resistance near $0.2260 on the hourly chart of the XRP/USD pair. Finally, the 100 hourly simple moving average is acting as a strong resistance near $0.2250.

Therefore, a clear break above the $0.2260 resistance area and the 100 hourly simple moving average could open the doors for more gains. The next major resistance is near the $0.2300 level. It is near the 76.4% Fib retracement level of the latest decline from the $0.2325 high to $0.2188 low.

On the downside, an initial support is near the $0.2220 level. If there is a downside break below $0.2200, the price could continue to decline towards the $0.2180 support. The main support is near the $0.2150 level.

Ripple Price

Looking at the chart, ripple price is facing a couple of important resistances near $0.2250. Thus, the bears might eye another decline below the $0.2220 and $0.2200 support levels. Having said that, the bulls might appear if the price tests the $0.2150 support area.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is about to move back into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently declining and is just below the 50 level.

Major Support Levels – $0.2220, $0.2200 and $0.2180.

Major Resistance Levels – $0.2250, $0.2560 and $0.2300.

Aayush Jindal , 2019-12-02 06:28:03

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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.

Featured Image from Shutterstock

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

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