For the past few days, Ripple has been trading in a tight range. The price movement is insignificant. Previously, XRP has been consolidating between $0.43 and $0.50 price levels.
However, after March 16 price spike, the altcoin has narrowed its fluctuation between $0.46 and $48. The price action is characterized by small body candlesticks called Doji and Spinning tops. These candlesticks are indicating that buyers and sellers have reached a period of indecision.
With clustering of the candlesticks, traders will be unable to discern the support and resistance of price. The market is in a choppy price action. For instance, in a tight range trading, XRP may encounter a trending move. If buyers can push XRP above the $0.50 resistance, it will signal the resumption of the uptrend. The first target price will be $0.65 high. Conversely, if the bears break the $0.43 support, it implies that XRP will trend downward to $0.35 low. XRP is still trading at $0.46 at the time of writing.
The 21-day and 50-day SMAs are sloping horizontally indicating the range-bound movement. The range-bound movement will persist if the bulls fail to break above the SMAs or the resistance line of the descending channel. Ripple is at level 52 of the Relative Strength Index period 14. XRP is in the uptrend zone and may rise.
Major Resistance Levels – $0.65 and $0.75
Major Support Levels – $0.35 and $0.30
The current consolidation may result in a trending market. Meanwhile, On February 26 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that Ripple will rise to level 1.618 Fibonacci extension or the high of $0.82.
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