After the recent rebound on December 16, the coin rallied from the low of $0.46 to the $0.65 high. The altcoin pulled back to resume a sideways move between the levels of $0.54 and $0.60.
The recent pullback was a result of the overwhelming selling pressure at a higher price level. In the previous article, it was explained that the candlestick with long wicks, pointing upward were indicating strong selling pressure at higher price levels.
Whereas the candlesticks with long tails, pointing downward were indicating strong buying pressure at lower price levels. This happens in the lower time frame. Today, the crypto is likely to be in a sideways move in the current price range until the current resistance is breached. Ripple may be in a range-bound movement for a couple of days. However, if a breakout occurs at $0.60, Ripple will resume a fresh uptrend.
The price is attempting to break above the 21-day SMA which will increase the chances of the upward move. The upward move is doubtful as price is yet to be above the SMAs. The coin is at level 55 of the Relative Strength Index period 14. It indicates that XRP is in the uptrend zone and the bullish momentum is likely to continue.
Key Resistance Zones: $0.80, $0.85, $0.90
Key Support Zones: $0.40, $0.35, $0.30
Ripple upward move is likely to continue if the current resistance is breached. According to the Fibonacci tool, the market will rise to level 1.618 Fibonacci extension after retracing from 61.8% Fib. Level. This will happen if a breakout is achieved. Meanwhile, a target price of $1.1117 is expected.
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 funds.