Ripple (XRP) is Holding up Well Amidst Strong Rejection at Breakout Point

Today, Ripple (XRP) is trading on the upside to breach the resistance at $0.205. The cryptocurrency has been on a downward move after the XRP reached the overbought region since April 30. In the overbought region when sellers emerged, the coin dropped to $0.21 low and resumed sideways move below the $0.225 resistance. The sideways move became necessary because buyers fail to sustain the uptrend above $0.225.

XRP/USD - Daily Chart

XRP/USD – Daily Chart

The coin encounters another breakdown on May 10, which sank Ripple to $0.18 low. This completes the ongoing downward move. Since on May 10, the upward move has been restricted below the $0.205 resistance. In the past week, the bulls have been finding penetration difficult at the minor resistance. On the upside, a break above $0.205 resistance will accelerate the resumption of the uptrend.

 

Ripple upward move is being challenged

On the daily chart, XRP encountered a breakdown that further depreciated the coin to $0.18 low. In its downward correction, buyers have been finding penetration difficult at $0.205 resistance. Its inability to break the resistance has warranted a sideways move below it. At the moment the bulls are approaching the minor resistance to break it. The market will move up to $0.22 high if the minor resistance is breached. The momentum expected to extend to a $0.23 price level. Ripple will continue its sideways move if the bulls fail to breach the minor resistance.

XRP/USD - 4 Hour Chart

XRP/USD – 4 Hour Chart

Key levels to watch

  • Key Resistance Zones: $0.35, $0.40, $0.45
  • Key Support Zones: $0.25, $0.20, $0.15

The Stochastic Indicator

Ripple is currently below 50% range of daily stochastic, meaning that the crypto is in a bearish momentum. This is contrary to the recent price action that is indicating a bullish signal. Buyers are attempting to break the downtrend line. When price breaks and closes above the downtrend line, it indicates that the trend has changed. Ripple will resume a fresh uptrend.

 The Relative Strength Index (RSI) Indicator

The crypto is now at level 51 of the Relative Strength Index period 14. Ripple intends to rise as it is in the uptrend zone. The price is attempting to break above the 12-day and 26-day EMAs. The market will start rising when the price is above the EMAs.

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