Ripple began a downward move soon after XRP was overbought at $0.34. In the last two weeks, XRP has dropped to a low of $0.22. During its downward move, the $0.28 price level has been knotty. The first bearish impulse was at the low of $0.28 where the bulls and bears tussle for a price over a week. Eventually, the bears have the upper hand, as XRP drops to the low of $0.26.
Today, after an initial fluctuation, XRP slumped to the low of $0.22. Nonetheless, as the market reaches a low of $0.22, Ripple appears to be in the oversold region. Buyers are expected to emerge at this price level. Ripple will fall to the next support level at $0.21 if buyers fail to emerge. An upward movement is expected if buyers emerge but may face resistance at $0.26.
Ripple is below the 20% range of the daily stochastic as XRP falls to a low of $0.22. This implies that Ripple is in the overbought region and will remain until buyers emerge. It also means that XRP is in a strong bearish momentum.
Key Resistance Zones: $0.35, $0.40, $0.45
Key Support Zones: $0.25, $0.20, $0.15
Ripple is said to be oversold at $0.22. In an oversold situation, the bearish momentum is strong while the emergence of buyers will reverse the momentum to bullish. The downward move may subside if buyers are on hand to push XRP upward. Traders have the opportunity to take advantage of the oversold region to look out for a buy set up in anticipation of a bullish trend.
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 funds.