Ripple (XRP) has been trapped between a tight range of $0.20 and $0.204 for the past week. There has been no significant price movement within that period. In the previous week, the bulls have traded in the $0.214 and $0.215 resistance zones. Buyers could not sustain the upward move because of a lack of buying power at higher price levels.
On June 2, the cryptocurrency traded and tested the $0.215 resistance zone and was repelled. The crypto plunged to $0.197 low. After an upward correction, XRP settled above $0.20 support. On the upside, XRP rebounded above the $0.20 support and reached the $0.2075 high but was repelled.
Attempts by buyers to push the price upward was restricted below $0.204 resistance. In the meantime, the price is consolidating between $0.20 and $0.204. Presently, Ripple uptrend is doubtful except the resistance levels of $0.204 and $0.2075 are broken.
The market will resume a fresh uptrend to retest the resistance levels. Nonetheless, the crypto risks further depreciation if the bulls fail to break above the current resistance. The bears may turn round and break below the support which will force the coin to $0.19 low.
XRP consolidates for a possible rally
On the daily chart, the price action has remained choppy. The bulls and bears have reached equilibrium as the price settled above $0.20 but below $0.204 resistance. The consolidation has been ongoing for over a week. The crypto is heading for a possible rally. We expect a breakout above $0.204 resistance or a breakdown below $0.20 support.
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
In the short term trend, Ripple is above 75% range of daily stochastic. The market is in a bullish momentum while it is approaching the overbought region. XRP may face selling pressure if price enters the overbought region. The 12-day and 26-day EMAs are horizontally flat indicating the sideways move.
The Relative Strength Index (RSI) Indicator
XRP is has fallen to level 51 of the Relative Strength Index period 14. The coin is in the uptrend zone. Ripple is above the centerline 50 and it is likely to rise.