Ripple (XRP) Shows Signs of Contraction After Falling From Important Rejection

Ripple (XRP)

Ripple (XRP) has been trapped between $0.185 and $0.195 for the past two weeks. In the last breakdown on June 11, the fourth largest cryptocurrency plunged to $0.185 low and resumed consolidation. The bulls were making frantic efforts to push price above $0.195 resistance. Buyers made four attempts  to retest the resistance but were repelled as the market continued its consolidation.

On the upside, a strong bounce above $0.19 will propel price to break above the $0.195 resistance. The momentum will extend to $0.205 high. Ripple upward move is possible if the bulls break the downtrend line.

XRP/USD - 4 Hour Chart
XRP/USD – 4 Hour Chart

XRP will continue to rise if price breaks and closes above the downtrend line. The market will continue the current consolidation if the downtrend line remains intact. Nonetheless, if the bulls turn down after failing to break the $0.195 resistance, it shows a lack of buying at higher levels. The bears will take advantage of the bull’s inability at the resistance to break the support at $0.185. The coin will further depreciate to $0.14 low if the current support is breached.

XRP price action dominated by indecisive candlesticks

On the daily chart, the market is consolidating between $0.185 and $0.195. The price action is dominated by small body candlesticks like Doji and Spinning tops. These candlesticks are indicating that buyers and sellers are undecided about the direction of the market. Nevertheless, if the current consolidation persists, the coin will encounter a breakdown or breakout in the days to come.

XRP/USD - Daily Chart
XRP/USD – Daily 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

Before now buyers were making positive moves but were resisted at the $0.190 high. The coin is below 80 % range of the daily stochastic. It means that the market is consolidating downward to retest the current support line. Presently, the price bars are below 12-day and 26-day EMAs. It indicates that the market is falling

The Relative Strength Index (RSI) Indicator

Ripple has fallen to level 42 of the Relative Strength Index period 14. It is trading in the downtrend zone. The coin is below the centerline 50 and it is likely to fall. The 12-day and the 26-day EMAs are sloping horizontally. It indicates that the market is consolidating,

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