The price of Ripple (XRP) remains in a downward correction as the altcoin falls below the moving averages. After the recent slump, the cryptocurrency is trading between $0.62 and $0.72.
On February 24, the XRP price fell sharply to a low of $0.62, but bulls bought the dips as the altcoin corrected higher. Buyers pushed the altcoin to previous highs, but the uptrend was rejected at the high of $0.72.
In other words, the bullish momentum was pushed back at the 50-day moving average line. On the upside, the bulls need to break above the moving averages to resume upside momentum. If the bulls are successful, XRP will regain the high at $0.90. The bears could turn the $0.72 price level into a resistance zone, which would result in further downward movement of the cryptocurrency. Meanwhile, XRP is trapped in a range. A break below $0.62 will send the altcoin back to the $0.54 price level.
Ripple is at the level 43 of the Relative Strength Index for the period 14. XRP has held steady above level 43 for the last five days, while the altcoin is trading in the downward zone. XRP price bars are below the moving averages, which makes it vulnerable to a decline in the downtrend zone. The cryptocurrency value is above the 50% area of the daily stochastic. This suggests that the market is in a bullish momentum. However, the current uptrend is in danger of failing at the $0.72 resistance zone.
Key resistance levels - $1.95 and $2.0
Key support levels - $0.80 and $0.60
XRP/USD is in a downtrend as the price has reached the low of $0.62. Ripple risks further selling pressure if buyers fail to keep the price above the $0.72 level. Meanwhile, the Feb. 22 downtrend has a candlestick body testing the 78.6% Fibonacci retracement level. The retracement suggests that XRP will fall, but will reverse at the level of the 1.272 Fibonacci extension or $0.62.
Disclaimer. This analysis and forecast are the personal opinions of the author 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