Ripple has seen a positive +6.43% over the past 24 hours of trading. The cryptocurrency is now exchanging hands at a price below $0.40 at $0.3729. The market has had a turbulent 7 day period as price action drops by a total of -23%.
- Ripple has recently broken below the $0.40 handle.
- The market has found support at the .786 Fibonacci Retracement level priced at $0.37.
- Support moving forward; $0.3775, $0.3596, $0.30, $0.2669, $0.2468.
- Resistance moving forward; $0.40, $0.4242, $0.4659, $0.5280, $0.5901.
Ripple presently holds a $15 billion market cap value which puts the project in second place, ahead of Ethereum, In terms of market cap rankings. The 64-month-old coin has seen a small +6.30 price increase over the past 90 trading days and is now trading at a price that is -89% from all time high.
Ripple Technical Analysis
Analyzing the market from the daily chart above, we can see that Ripple has held relatively well against the USD during the recent market turbulence compared with the rest of the cryptocurrency industry. However, a 23% price drop over a 7 day trading period is a steep drop for any asset.
We can see that, over the past 2 days, the market has found a form of strong support at a short-term .786 Fibonacci Retracement level (drawn in green) priced at $0.3775. This Fibonacci Retracement is measured from when the market began at a low of $0.26 and rocketed to a high around $0.80.
Moving forward, if the downward pressure continues within the market and price action is driven lower we can expect immediate support below to be located at the downside 1.414 Fibonacci Extension level (drawn in blue) priced at $0.3596. Further support below this can then be expected at the psychological round number handle at $0.30.
If the sellers then continue to penetrate below the $0.30 handle we can expect further support below to then be located at the downside 1.618 Fibonacci Extension level (drawn in blue) priced at $0.2669 followed by a longer termed downside 1.272 Fibonacci Extension level (drawn in red) priced at $0.2468.
Alternatively, if the buyers re-enter the market and begin to push the market further higher we can expect immediate resistance above at the long term .886 Fibonacci Retracement level (drawn in black) priced at $0.4022. Further resistance above this can then be located at the previous downside 1.272 Fibonacci Extension level (drawn in blue) priced at $0.4242 followed by the short-term .618 Fibonacci Retracement level (drawn in green) priced at $0.4659.
The RSI is now trading very close to extreme oversold conditions. This indicates that the sellers may need a break before continuing further lower. For a sign that the bearish momentum is leaving the market, we will look for the RSI to rise back toward the 50 handle.
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Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Reach out to him at [email protected]