- Ripple has dropped back below the $0.50 handle over the past session of trading to trade around $0.44.
- The market is expecting strong combined support at the $0.40 handle.
- Support moving forward; $0.45, $0.4221, $0.4091, $0.4034, $0.3825, $0.3429, $0.3304.
- Resistance moving forward; $0.4702, $0.4755, $0.4975, $0.5198, $0.5365, $0.5584, $0.60.
Ripple has seen a further price decline totaling -9.32% over the past 24 hours of trading against the USD. The market is presently trading at a price of $0.4463 after undergoing a 13% price decline over the past 7 trading days. However, compared with the rest of the Cryptocurrency market, Ripple has been holding relatively strongly.
Ripple continues to hold the number 2 ranked position in terms of overall market cap value across the entire industry. It currently holds an $18 billion value and continues to widen the gap between Ethereum. XRP has seen a 38% price hike over the last 90 trading days as the 64-month-old coin now trades at a price that is 87% lower than the all-time high value.
Let us continue to analyze price action for XRP/USD over the short term.
Ripple Price Analysis [XRP]
Analyzing price action from the short term perspective above, we can see that the recent market drop had seen XRP/USD fall to a low of $0.3961 today. We can see that this area was heavily supported by the short-term .886 Fibonacci Retracement level (drawn in blue) priced at $0.4034 and the downside 1.272 Fibonacci Extension level (drawn in red) priced at $0.4091.
As the market hit this area of combined support the bulls stepped back in and began to regain some of the losses. We can see that XRP/USD is now trading at the support provided by the short-term .618 Fibonacci Retracement level (drawn in blue) priced at $0.4535 as the Bulls battle for control.
Moving forward, if the sellers continue to drive price action below the $0.45 handle we can expect immediate support below to be located at the short-term .786 Fibonacci Retracement level (drawn in blue) priced at $0.4221 followed by the combined support at the $0.40 handle.
If the bearish sentiment continues further lower then further support can be found at the October 12 low priced at $0.3780 followed by the long-term downside 1.414 Fibonacci Extension level (drawn in red) priced at $0.3428.
Alternatively, on the other hand, if the buyers can hold above the support at the $0.4535 handle and drive price action higher we can expect further resistance above to be located at the .5 and .382 Fibonacci Retracement levels (drawn in blue) priced at $0.4755 and $0.4975, respectively.
If the bullish momentum continues to drive price action further higher then more resistance above can be located at the short-term 1.414 and 1.618 Fibonacci Extension levels (drawn in purple) priced at $0.5356 and $0.5584, respectively.
The RSI has recently slipped below the 50 handles to indicate that the sellers are in control of the market momentum. For a sign that the selling pressure is fading, we will look toward the RSI rising back toward the 50 handles.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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. Follow him at @TcmYaz.