Ripple in Jeopardy as Bulls Face Continuous Rejection at $0.26 Overhead Resistance

Nov 10, 2020 at 09:57 // News
Coin Idol
Ripple in jeopardy

On November 5, XRP rebounded as price rallied above the SMAs. This rally resulted in a continuous retest of the $0.26 overhead resistance. On November 7, the bulls retested and broke the overhead resistance as the price reached a high of $0.267.

Unfortunately, the selling pressure was overwhelming as sellers pushed the price back to the range-bound zone. One reason for the failure of the recent uptrend is that Ripple lacks buyers at higher price levels. 

In other words, more buyers are needed above the $0.26 support to facilitate the upward move. Today, buyers have broken above the $0.26 resistance but not convincingly as buyers continue to push above the resistance. On the upside, if buyers succeed, XRP will be out of the range-bound zone. Secondly, the coin will have price acceleration as it reaches the target price at $0.30. Conversely, the price may fall back to the range-bound zone if buyers fail to sustain the current momentum.

Ripple indicator analysis

Since November 6, the price bars are above the SMAs which are responsible for the recent retest of the overhead resistance. However, if price breaks below the SMAs, the downtrend will resume. Today, the price has broken above the resistance line of the horizontal channel. The breaking will come to stay if price breaks and closes above it.

XRP chart.png

Key Resistance Zones: $0.35, $0.40, $0.45

Key Support Zones: $0.25, $0.20, $0.15

What is the next move for Ripple?

Ripple is likely to make an upward move if buyers continue to retest the $0.26 overhead resistance. A continuous retest at resistance will weaken a resistance level. On November 7 uptrend, XRP was resisted, the retraced candle tested the 50% Fibonacci retracement level. This implies that there is a likelihood of the coin reaching a high of 2.0 Fibonacci extension. That is the high of $0.3016.

XRP chart.png

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

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