- XRP fell by a small 3% today as the cryptocurrency drops beneath $0.27.
- XRP was unable to overcome strong resistance at around $0.29 which caused it to roll over and head back toward the 200-days EMA.
XRP met strong resistance at the $0.29 level which caused the cryptocurrency to roll over and fall. Over the past 30-days, it is still up by a total of 25.5%, giving it greater gains than that of Bitcoin in the same period.
XRP is now headed back toward the 200-days EMA and if it falls beneath, we could expect the cryptocurrency to continue back toward $0.23
XRP Price Analysis
XRP/USD – Daily CHART – SHORT TERM
Market Overview
Analyzing the daily chart above, we can clearly see XRP rebounding from support at $0.181 during December 2019. The cryptocurrency returned here in January 2020 allowing it to bounce and to start the bullish run higher. This rebound allowed XRP to rise by a total of 61% in 2020 to reach the resistance at $0.29.
The cryptocurrency has fallen from here as it now trades at the $0.268 support.
Short term prediction: NEUTRAL
The rejection from the $0.29 level has now rendered XRP as a neutral market. The cryptocurrency will have to break and close above $0.29 to turn bullish again. On the other hand, if XRP falls beneath $0.24 (100-days EMA) the market will turn bearish.
Toward the downside, the first level of support lies at $0.264 (short term .382 Fib Retracement). This is quickly followed with additional strong support at $0.26 which is provided by the 200-days EMA.
If the sellers break beneath $0.26, added support is expected at $0.254 (.5 Fib Retracement), $0.244 (.618 Fib Retracement), and $0.24 (100-days EMA).
On the other hand, if the bulls can defend the $0.26 support and bounce higher, the first level of resistance lies at $0.28. This is followed by resistance at $0.286 and $0.29. If the buyers can drive above $0.29, higher resistance lies at $0.30, $0.308 and $0.3177.
The RSI has rolled over from extremely overbought conditions as it returns to the 50 level. We will be watching the RSI closely as a break beneath 50 will show a momentum shift as the bears begin to take charge.
Key Levels
Support: $0.264, $0.26, $0.254, $0.25
Resistance: $0.28, $0.286, $0.29, $0.30
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.
