Ripple Reaches Oversold Region as Altcoin Holds Above $0.56

May 03, 2022 at 10:30 // Price
Coin Idol
Ripple has fallen back into the oversold region of the market

The price of Ripple (XRP) is in a downtrend as the cryptocurrency fell to the low of $0.56 on April 30. The altcoin has fallen back into the oversold region of the market.

Ripple (XRP) Price Long-Term Forecasts: Bearish

Buyers are emerging in the oversold region, driving the cryptocurrency to the previous high at $0.68. The $0.68 price level has been the key support since February. Bears broke the previous low and reached the low of $0.56. On the downside, further downward price movement is unlikely as the market has reached the oversold region. Today, XRP is rising and reached a high of $0.61. XRP/USD will regain the previous highs of $0.80 and $0.90 if the bulls break the resistances at $0.68 and $0.75. If the bulls fail to break through the $0.56 and $0.75 resistances, the cryptocurrency will be forced into a trading range between these two levels.

Ripple (XRP) Indicator Analysis

Ripple is still in oversold territory as the altcoin has fallen to the 25 and 34 levels of the Relative Strength Index for the 14 period. XRP is rising as buyers appear in the oversold region of the market. The altcoin is below the 20% range of the daily stochastic. This indicates that the market has reached the oversold region. The cryptocurrency is rising as buyers are emerging in the oversold region. The 21-day line SMA and the 50-day line SMA are sloping south, indicating a downtrend.

XRPUSD(Daily Chart ) - May 3.png

Technical Indicators: 

Key resistance levels - $1.95 and $2.0

Key support levels - $0.80 and $0.60

What is the next move for Ripple (XRP)?

XRP/USD remains in a downtrend as selling pressure reaches bearish exhaustion. The altcoin is holding above $0.56 as the market rallies. Meanwhile, the downtrend from April 11 has shown a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that XRP will fall to the Fibonacci extension level of 1.618 or $0.548.

XRPUSD(Daily Chart 2) - May 3.png

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 

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