Ripple Upward Correction Stalls at $1.24 High as Sellers Threaten to Short

Aug 20, 2021 at 10:18 // News
Coin Idol
The XRP uptrend will resume if buyers are successful

The price of Ripple (XRP) is recovering from the previous downtrend, but faces a first hurdle at $1.24. In the last 24 hours, the bulls have retested the recent high twice, but the selling pressure is overwhelming.

The XRP uptrend will resume if buyers are successful. That means Ripple will retest the previous high at $1.35 and break into the uptrend zone. However, the bears seem to be prevailing as the market is still in the overbought zone. However, a rejection of the high at $1.24 would mean further downside for the cryptocurrency. Ripple will fall to regain the previous low at $1.07. If the downturn continues, the bears will pay their third visit. The market will continue to disintegrate if the bears break the support at $1.07. That means XRP/USD will continue to fall to a low of either $0.80 or $0.90.

Ripple indicator analysis

The cryptocurrency is at level 69 on the Relative Strength Index for period 14. Ripple is still trading in the overbought region of the market. The market is likely to continue to decline. Some sellers will show up in the overbought region. Ripple has a bullish crossover as the 21-day line SMA crosses above the 50-day line SMA. This indicates a buy signal.

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Technical indicators:

Key Resistance Levels - $1.95 and $2.0

Key Support Levels - $0.80 and $0.60

What is the next move for Ripple?

Ripple's upside move is doubtful as the altcoin is trading in the overbought region. The cryptocurrency is still trading below the $1.24 price level. Meanwhile, the uptrend from August 11 has seen a candlestick retracement that tested the 61.8% Fibonacci retracement level. The retracement suggests that XRP will rise to the Fibonacci extension level of $1.618 or $1.26.

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Disclaimer. This analysis and forecast are the personal opinions of the author 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 

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