Ripple Is in a Downward Correction, Consolidates Between $0.22 and $0.24

Ripple is consolidating above $0.21 support as the price action is characterized by small body candlesticks. These small body candlesticks are called Doji and Spinning tops.

These candlesticks describe the indecision between buyers and sellers about the direction of the market. Presently, the crypto is fluctuating in a tight range between $0.22 and $0.24. 

Nevertheless, on December 23 when XRP crashed, the crypto fell to $0.21 low but corrected upward. The upward move was repelled as the coin fell back to $0.21 support. XRP is consolidating while in a downtrend. Traders believe that consolidation near support level increases the chances of a breakdown. Breakout chances are more near a resistance level. There is a possibility of a further downward move.

Ripple indicator analysis

Ripple has fallen below the 20% range of the daily stochastic. It indicates that the coin is in the oversold region of the market. Buyers are likely to emerge to push prices upward. The 21-day and 50-day SMAs are pointing downward indicating a downtrend.

Key Resistance Zones: $0.80, $0.85, $0.90

Key Support Zones: $0.20, $0.15, $0.10

What is the next move for Ripple?

As the coin consolidates above the current support, XRP price has tested the retracement level of the Fibonacci tool. On December 29 downtrend; a retraced candle body tested the 78.6 % Fibonacci retracement level. The retracement implies that Ripple will fall and reverse at level 1.272 Fibonacci extension.

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