Ripple is trading under intense overhead pressure, with a massive freefall back to $0.4 as scenario 3. For scenario 3, the path of least resistance is downwards, as seen on the 4-hour chart. The lower boundary of the descending parallel channel appears to be holding the fort for the bulls. However, the Relative Strength Index has reinforced the ongoing bearish momentum. If the indicator hits the oversold area, selling orders are likely to increase significantly. The 200 Simple Moving Average on the 4-hour chart is also in line to offer immediate support, and buyers must hold this crucial support. Otherwise, XRP/USD could tumble to $0.4 (next tentative support area). The daily chart also confirms the bearish outlook on scenario 3, suggesting that the next critical support lies at the 50 SMA. Similarly, the RSI is in a sloping motion but has not hit the oversold area yet.
On the other hand, the bearish picture will be invalidated if Ripple closed the day above $0.5. Moreover, the support at the channel’s lower boundary as well as the 200 SMA on the 4-hour would secure the uptrend if they remain intact. (Scenario 1 & 2) The most significant upward movement for XRP would be to overcome the hurdle of $0.6. There was a sharp upward move in bitcoin price above the USD 18,500 and USD 19,000 resistance levels. BTC even broke the USD 19,200 resistance, but it struggled near the main USD 19,450 and USD 19,500 resistance levels. For XRP, breakout above reaches previous major resistance at approximately 0.79. At this point, we will likely see a correction where our previous .68 resistance line was back when BTC broke $19800. This line will act as support and likely lead to a bounce and break scenario. Price target for this breakout is $1.00. This will likely send XRP into a second descending channel as XRP faces the $1.00 resistance level as seen in my previous chart linked below.
On the other hand, the bearish picture will be invalidated if Ripple closed the day above $0.5. Moreover, the support at the channel’s lower boundary as well as the 200 SMA on the 4-hour would secure the uptrend if they remain intact. (Scenario 1 & 2) The most significant upward movement for XRP would be to overcome the hurdle of $0.6. There was a sharp upward move in bitcoin price above the USD 18,500 and USD 19,000 resistance levels. BTC even broke the USD 19,200 resistance, but it struggled near the main USD 19,450 and USD 19,500 resistance levels. For XRP, breakout above reaches previous major resistance at approximately 0.79. At this point, we will likely see a correction where our previous .68 resistance line was back when BTC broke $19800. This line will act as support and likely lead to a bounce and break scenario. Price target for this breakout is $1.00. This will likely send XRP into a second descending channel as XRP faces the $1.00 resistance level as seen in my previous chart linked below.
