The main point from the analysis:
- Defying gravity is Ripple price which is imprisoned in a wide range between $0.30 and $0.34.
- If XRP plunges below the range support ($0.30), the price could test $0.28 support.
The market is currently retracing from the impressive gains seen in the last couple of days. However, defying gravity is Ripple price which is imprisoned in a wide range between $0.30 and $0.34. This ranging trend has dominated the market since July 11. There have been few breakouts either side of the range but not significant enough to escape the ‘crypt’.
Ripple Key Technical Levels:
- Support Areas: Confluence (50 SMA and 100 SMA 4-hour chart), $0.30 (range lower limit) and $0.28 (previous month support).
- Resistance Areas: $0.3200, $0.3400 (range upper limit) and $0.4 (target breakout).
- MACD: +0.0022 is a key bullish indicator above $0.000 (mean line).
XRP/USD 4-hour chart
Chart source: Tradingview
At the time of writing, XRP is exchanging hands at $0.3184 following correction from $0.3421 (intraday high). Despite the retracement, the price still holds position above the moving averages. In this case, the 50 Simple Moving Average 4-hour chart and the 100 SMA 4-hour. Both of which are forming a formidable support confluence at $0.3159.
If the 50 SMA manages to cross above the longer-term 100 SMA, traders can expect a bounce towards the range limit at $0.34.
Meanwhile, buyers must continue to fight tooth and nail to protect the initial support at the moving averages and the next support target at $0.31. Otherwise, If XRP plunges below the range support ($0.30), there is a high chance that the price will test $0.28 support before a rebound occurs.
The technical picture is neither negative nor positive. This means that market indecision prevails at press time. Nonetheless, the Moving Average Convergence Divergence (MACD) currently positioned within the positive region suggests that the bulls have more control over trend. We are likely not to see Ripple breaking above the range resistance today, but as long as the MACD stays above 0.0000 (mean line), a step above $0.32 is possible. Besides, relative sideways trading will continue to dominate the trend.