Ripple Pulls Back in a Downtrend, Poises for Upside Momentum
Jan 23, 2021 at 11:01 //
NewsRipple is moving up after it slumped to $0.24 low yesterday. After it slumped and pulled back, a candlestick was indicating a long tail.
This long tail indicates that there is strong buying pressure at a lower price level. Nonetheless, the bulls buy the dips as the coin moves up to $0.28 high. The upward move is facing resistance at the $0.28 high. On the downside, if XRP faces rejection, the crypto will drop to $0.23 low, and subsequently, the price will fall again to $0.16 low.
On the other hand, if the bulls break the resistance at $0.28, the price will rally to $0.32 high. The bullish momentum will extend to $0.36 high. In the meantime, XRP is trading at $0.27 at the time of writing. The crypto is likely to fluctuate between $0.26 and $0.28 if the bulls fail to break the current resistance.
Ripple indicator analysis
From the price action, XRP is consolidating above the 21-day SMA support but below the resistance line of the descending channel. A breakout above the resistance line will propel the coin to resume upside momentum. On the other hand, a breakdown below the 21-day SMA will cause the coin to decline.
Key Resistance Zones: $0.35, $0.40, $0.45
Key Support Zones: $0.25, $0.20, $0.15
What is the next move for Ripple?
Ripple is likely to make a further upward move given the strong buying pressure. XRP will rise if the recent resistance levels are breached. On December 7 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that Ripple will rise to level 2.0 Fibonacci extension. That is a high of $0.556.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow
