Ripple Consolidates above $0.38 as Buyers Emerge in the Oversold Region

Ripple's (XRP) downtrend has eased after the cryptocurrency fell to a low of $0.33 on May 12. Today, XRP is trading at $0.42 as of press time. Last week, the price movement was insignificant after reaching the low of $0.33.

Buyers managed to push the altcoin to the high of $0.4670. XRP will face selling pressure every time the market reaches the $0.47 resistance zone. On the downside, the XRP price has held steady above the $0.38 support. Bulls have been defending the current support since May 12. The current support is marked by two candlesticks with long tails pointing down. The candlesticks with long tails indicate that there is strong buying pressure at the current support. In the meantime, prices could hold before being breached.

Ripple indicator analysis

Ripple is at level 35 of the Relative Strength Index for period 14, which means that buyers are emerging from the oversold area and pushing prices higher. Meanwhile, the 21-day line SMA and the 50-day line SMA are trending south, while the blue line is breaking below the red line, indicating a sell order. XRP is above the 25% area of the daily stochastic. The market is in a bullish momentum, but the price movement is unstable.

Technical indicators:  

Major Resistance Levels - $0.80 and $1.00

Major Support Levels - $0.60 and $0.40

What is the next move for Ripple?

Ripple is in a sideways movement as selling pressure is easing. Buyers and sellers are still in the process of taking control of the price as the market continues its fluctuation. Meanwhile, the May 12 downtrend has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that XRP will fall to the 1.272 Fibonacci Extension level or $0.25. 

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