The Ripple (XRP) price has bounced below the $0.44 resistance since the price decline on May 8.
The cryptocurrency asset has been trading above the $0.41 support but below the $0.44 resistance for the past five days. However, at the time of the article's publication, XRP is trading at $0.44. The price signal suggests that the altcoin will continue to lose value. After the price plunge on April 21, XRP experienced an upward correction and a candlestick tested the 61.8% Fibonacci retracement level. The correction predicts that XRP will fall below the 1.618 Fibonacci extension level at $0.38. The altcoin is limited to a range between $0.41 and $0.44 based on market fluctuations. If the price falls below the $0.40 support, selling pressure will resume.
According to the Relative Strength Index for the 14 period, Ripple is at level 36. If the bears break the $0.40 support, the altcoin will reach the oversold zone soon. The current selling pressure is due to the fact that the price bars are below the moving average lines. Above the daily stochastic threshold of 40, the cryptocurrency is in an uptrend. The Doji candlesticks have slowed down the momentum.
Key resistance levels - $0.80 and $1.00
Key support levels - $0.40 and $0.20
Ripple is currently in an upward correction while in a downtrend. On the smaller time frame, the cryptocurrency's price rose above the moving average lines, but was rejected at the high of $0.44. Altcoin is currently trapped between the moving average lines. It might be forced to move between the moving average lines in a range.
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