Ripple in a Downward Correction, Faces Rejection at $1.20 High

Ripple (XRP) is moving above the moving averages as the altcoin faces rejection at the resistance zone at $1.20. Today, XRP has fallen from the high of $1.20 to support above $1.08.

The current downtrend will continue if the price falls below the $1.08 support. However, XRP will start a new uptrend if the current support holds. Otherwise, XRP/USD will continue to fall to $0.91 or $1.03. The current support is the previous historical price level from October 13. In the last price action, the support was breached as the altcoin fell to a low of $0.91. Meanwhile, above the current support, buyers and sellers are wrestling for price ownership.

Ripple indicator analysis

XRP price bars are still above the 21-day line SMA and the 50-day line SMA, indicating a possible upside move for the cryptocurrency. XRP has fallen to the 51 level of the Relative Strength Index for period 14. This indicates that there is a balance between supply and demand. Currently, the market is below the 60% area of the daily stochastic. This means XRP is in a bearish momentum.

Technical indicators:  

Major Resistance Levels - $1.95 and $2.0

Major Support Levels - $0.80 and $0.60

What is the next move for Ripple?

On the 4-hour chart, XRP/USD has resumed its downward movement after being rejected from the high at $1.18. XRP price has crossed below the moving averages and is retesting the previous support at $1.08. Ripple will fall if the bears break below the current support. Meanwhile, price took a downward turn on October 17. A retracement candlestick tested the 61.8% Fibonacci retracement level. The retracement suggests that the XRP price will fall to the 1.618 Fibonacci Extension level, or $0.91.  

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.