Ripple has touched the range between $0.5-0.55 three times over the past year. Now, the bears are trying to bring the price to this range once again, but will support hold the fourth attempt?
Technical Analysis By Grizzly
The Daily Chart
On the daily timeframe, the bears were able to push the price below the support level at $0.63 and turn it into a horizontal resistance (in red).
XRP price continued to drop after the pullback and is now close to the support zone at $0.50-0.55 (in green). Since last month, the bearish momentum in the market has begun to diminish.
Given that the price had reached the green zone three times in the past year, it is now considered technically weaker support. If the bearish momentum continues to decline, the demand at this level will likely not be able to cope with the supply, in case of another retest of the support. If this happens, support at $0.42 is likely the next stop for XRP.
The 4-Hour Chart
On the 4-hour timeframe, Ripple dropped to short-term support at $0.56 after failing to break above the thick Ichimoku cloud.
Given that the cloud thickness in the resistance zone at $0.60 has decreased, it can be expected that the resistance will likely get retested. Suppose Ripple can not get back to the top of this resistance, it will likely plunge into the $0.5 support area, which is mentioned above.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making investment any decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.