The price of Ripple (XRP) has come under renewed selling pressure after falling below $0.73 support. Today, the cryptocurrency has fallen to a low of $0.68 by the time of writing.
There is a likelihood of a further decline to the downside. In recent price action, the bulls and bears have kept the altcoin in a range between $0.73 and $0.80. On January 19, the bears broke the support at $0.73 and corrected upwards. However, after the price retested the $0.76 high, the downtrend continued. Ripple could go back and retest the previous low of $0.57. The $0.57 level is the previous low of the December 4 price drop. Meanwhile, the altcoin has fallen into the oversold zone of the market. Selling pressure is likely to reach bearish exhaustion.
Ripple has fallen to the 30 level of the Relative Strength Index for the 14 period. As the price has broken below the support at $0.73, the downtrend has resumed. XRP is below the centre line and is capable of further downtrends. The cryptocurrency is below the 20% range of the daily stochastic. The stochastic of the daily chart also indicates an oversold condition of the cryptocurrency.
Major Resistance Levels - $1.95 and $2.0
Major Support Levels - $0.80 and $0.60
On the 4-hour chart, XRP/USD is in a downward movement. The bears have broken the lower price range while the market resumed the downward movement. Nevertheless, on January 10, the downtrend tested the 78.6% Fibonacci retracement level with a retracement candlestick. The retracement suggests that XRP will fall to the Fibonacci extension level of 1.272 or $0.61.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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