Ripple Retraces to $0.23 Low as Bulls Buy the Dips

Ripple Retraces to $0.23 Low as Bulls Buy the Dips

October 31, 2020

Since October 22, the Ripple downward move ended on October 30 with the formation of a candlestick with a long tail.

The long tail shows that there is strong buying pressure at the previous support level resisting the selling pressure. On October 30, sellers pushed the price to $0.230 low while buyers pushed XRP back to $0.238 high. 

The bearish trend will continue on the downside if sellers are successful. The price will break the $0.23 support and bearish momentum will extend to the $0.22 low. On the other hand, if buyers push back price on the upside, the sideways move between $0.23 and $0.26 will resume. The bullish momentum will resurface as the price will attempt to retest the $0.26 resistance. A breakout at $0.26 will accelerate the price movement to a $0.30 high.

Ripple indicator analysis

Ripple has fallen below the 30% range of the daily stochastic. It indicates that the market is in a bearish momentum. The 21-day and 50-day SMAs are sloping horizontally indicating the sideways move.

Key Resistance Zones: $0.35, $0.40, $0.45

Key Support Zones: $0.25, $0.20, $0.15

What is the next move for Ripple?

From the price action, XRP appears to reach bearish exhaustion as the price is corrected upward to a $0.24 high. In the meantime, On October 26 downtrend; the retraced candle body tested the 61.8% Fibonacci retracement level. This implies that XRP will decline to level 1.618 Fibonacci extensions or $0.2305 low. The coin has already tested this level and moved up.

Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

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