The price of Ripple (XRP) has risen slightly after falling on December 19. The cryptocurrency had reached a low of $0.33, but had only risen to a high of $0.34.
In the last five days, the price movement stagnated, which is evident from the indecisive small-bodied candles known as doji. The candlesticks indicate that buyers and sellers are split on the market direction. XRP is currently hovering between $0.32 and $0.40. If XRP rallies, the altcoin will rise above the moving average lines. Perhaps the upward momentum will break through the resistance at $0.40. This will drive XRP back to previous highs. On the downside, a further decline is unlikely as the market approaches oversold territory.
Ripple has remained stable during the 14 period with a Relative Strength Index of 38. The downtrend has weakened as the market has reached the oversold area. The price bars are currently below the moving average lines, indicating that the price will continue to fall. On the 4-hour chart, XRP is trading above the daily stochastic level of 80, indicating that the market has reached an overbought condition. XRP could fall if sellers appear in the oversold zone.
Key resistance levels - $0.80 and $1.00
Key support levels - $0.40 and $0.20
XRP is experiencing resistance on the 4-hour chart at the $0.35 resistance or the 50-day line SMA. Selling pressure may be back to the downside. XRP completed a downward correction to the upside on December 19 and a candlestick tested the 78.6% Fibonacci retracement level. The correction suggests that XRP will fall but then reverse at the 1,272 Fibonacci extension level or at $0.31.
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