Ripple Is in a Downward Correction above $1.25 Support, Unable to Push Above $1.40 High

Since the last bearish impulse on May 12, the downward move has been stalled above the $1.25 support level. The current support has been tested by the bears on more than three occasions but was repelled.

If buyers can push XRP above the $1.50 high, Ripple will resume an upward move. The altcoin will be out of downward correction. However, the current uptrend is facing resistance at the $1.40 high. 

If the bulls face rejection at the recent high, XRP will fall and resume a range-bound move. In the previous price action on May 13, the bulls were resisted at the $1.38 high. The market declined to the current support at the $1.38 price level. Presently, if buyers face rejection at the $1.40 resistance, the range-bound movement between $1.25 and $1.40 will continue for a few more days. XRP/USD is trading at $1.39 at the time of writing.

Ripple indicator analysis

XRP finds support above its 50-day SMA as the altcoin resumes upward. A break above the 21-day SMA will mean the resumption of a possible uptrend. Ripple is at level 50 of the Relative Strength index period 14. It indicates that there is a balance between supply and demand. Ripple is above the 40% range of the daily stochastic. This indicates that the market has bullish momentum.

Technical indicators:  

Major Resistance Levels – $1.95 and $2.0

Major Support Levels – $0.60 and $0.55

What is the next move for Ripple?

Ripple bulls are testing the minor resistance at $1.40 to break it. A breakout will enable the altcoin to reach the bullish trend zone. Similarly, if XRP falls and the bears break the $1.25 support, XRP will decline to $1.00 low. Perhaps, the Fibonacci tool analysis may hold. Meanwhile, on May 10 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that Ripple is likely to fall to level 2.0 Fibonacci extension or the low of $0.69.  

Disclaimer. This analysis and forecast are the author’s personal opinions and 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