The price of Ripple (XRP) resumed its downward correction after the January 22 plunge. Over the past four days, the XRP price has fluctuated between $0.56 and $0.62, with buyers unsuccessfully attempting to break above resistance at $0.62 three times.
Today, the XRP price is falling after a failed upward movement on January 24. The rejection of the recent high suggests that the bears intend to lower Ripple despite the oversold condition of the cryptocurrency. On the upside, if the price recovers in the oversold zone, the market will rise and retest the resistance at $0.62 and $0.80. On the other hand, if the bears break the support at $0.56, XRP/USD will decline, but will rise again at $0.44.
The cryptocurrency has fallen to level 26 of the Relative Strength Index for the period 14. The RSI indicates that XRP has reached an oversold area of the market. This indicates that the downtrend is likely to end. In addition, the market is below the 20% range of the daily stochastic. The daily stochastic has also indicated an oversold condition for the altcoin.
Major Resistance Levels - $1.95 and $2.0
Major Support Levels - $0.80 and $0.60
XRP/USD is in a downward correction and consolidating above the $0.56 support level. Nevertheless, the downtrend has shown a candlestick on December 13 testing the 61.8% Fibonacci retracement level. The retracement suggests that XRP will fall to the Fibonacci extension level of 1.618 or $0.44.
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.