- Rebound from the incredible $0.24 support failed the new resistance around $0.27.
- Oversold levels suggest XRP is a good “BUY.”
Ripple is facing resistance; making recovery above $0.30 a mirage. The rebound from the incredible support at $0.24 failed to break the new resistance around $0.27. At the moment, we can say that Ripple is between a rock and a hard place. Correction towards $0.30 is almost impossible based on the prevailing technical picture. At the same time, it risks further breakdown if $0.24 support is retested.
XRP/USD 4-hour chart
At press time, XRP is trading at $0.25 amid a growing a bearish momentum. Lack of energy to sustain gains above $0.0.27 left a gap currently explored by the sellers. Glancing upward, the descending trendline will also limit retracement. If the bulls manage to clear the resistance at $0.30, they will face resistance from the 100 Simple Moving Average 1-hour currently at $0.3041.
Technically, the trend is strongly bearish. However, this not to say that buying pressure is completely unavailable. The Moving Average Convergence Divergence (MACD) is confined in the negative territory. The slight negative divergence suggests that sellers have the upper hand. Nonetheless, if traders can spot a developing slope towards the positive zone, it will be a good signal to stamp down on their bullish positions.
On the other hand, the full stochastic has a bearish tone. The retreat from the levels close to the overbought hit 25 before lethargically rising to 36. If the gradual slope back to the oversold continues, XRP is likely to break down further towards $0.24 key support.
Meanwhile, a cryptocurrency analyst believes that the third-largest crypto is currently oversold. According to him, this is likely “a good BUY.”
— Naeem Aslam (@NaeemAslam23) August 16, 2019
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