- Failed triangle breakout sends XRP/USD to explores lows below $0.2900.
- Ripple is seen trading at $0.3132 amid a building bearish momentum.
- XRP/USD must clear the resistance at 100 SMA for an upside correction above the range limit at $0.34767.
XRP/USD reclaimed the broken support at $0.31 on Friday 29 and extended the gains above the six-weeks long descending trendline. The move was a confirmation that the bulls are back following the recent dip that saw Ripple explore the levels towards $0.29. In spite of the bullish trend in March, XRP has not been able to recover to February highs around $0.3456 (Fib swing high).
XRP/USD 4-hour chart: Key Barriers Stay in Place
The 4-hour shows a failed triangle breakout at $0.31733 on March 19. The bears took advantage of sending XRP below the 100 SMA 4-hour and the 200 SMA 4-hour. The move saw the bears come out of their hiding as XRP/USD sunk below $0.30 before forming a bottom at $0.29123 slightly above the key demand zone between $0.28 – $0.29.
Ripple is seen trading at $0.3132 amid a building bearish momentum. An intraday high has been formed at $0.31688. Retracement to the upside will be an uphill task according to the RSI 4-hour range; which currently is at 54.88 while slopping downwards. The Indicator has since March 19 avoided the overbought region. At the same time, it has not explored the levels below 30 to show that the XRP/USD could continue in the somewhat sideways trading characterized by minor movements either side.
Resistance 1: Previous high ($0.31688) 4-hour.
Resistance 2: 61.8% Fib retracement level ($0.32) 4-hour.
Resistance 3: $0.34643 (Fib level swing high).
Support 1: 200 SMA 4-hour.
Support 2: 100 SMA 4-hour.
Support 3: $.029988
Key Demand Zone: $0.2800 – $0.2900.
XRP/USD daily chart: Range-bound amid extended sideways trading
According to the daily chart, XRP/USD is stuck in a range with resistance at $0.34767 and support at $0.24967. However, it is clear that the losing streak of 2018 was broken in January paving the way for the current sideways trend. Ripple extended the gains breaking past the trendline resistance but the 100- Day SMA prevented any further breakout. The buyers must clear the resistance at 100 SMA currently at $0.32317 (breakout point) for an upside correction above the range limit ($0.34767). Further correction from the range will face the 200 SMA daily resistance at $0.3738
The gap between the moving averages has been almost constant since the beginning of March following the double cross on January 19. Besides, the 100 SMA is below the longer-term 200 SMA to show that bear pressure is present and will continue in the coming weeks.
Key levels to look out for:
Range resistance $0.34767
200 SMA daily: $0.3738
100 SMA daily: $0.32317
Range support: $0.24967
RSI daily chart: 53.16
MACD daily chart: -0.00149
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige