Ripple Reaches Oversold Region as Buyers Converge Above the $1.00

Ripple (XRP) has fallen to the low of $1.01, while the price is again fluctuating between $1.01 and $1.10. Today, bullish candlesticks are moving above the $1.00 support, suggesting a possible upside move.

On November 20, buyers defended the current support as bulls pushed XRP to the $1.10 high but were beaten back. Ripple is now forced to range below the moving averages. Sellers have the advantage as XRP is trading in the downtrend zone. The market will drop to the low at $0.85 once sellers break support at $1.00. If the buyers defend the current support, XRP will rise and break the resistance at $1.10. If buyers succeed in breaking through resistance, a break above the moving averages will signal the resumption of upward momentum.

Ripple indicator analysis

Ripple has fallen to level 39 on the Relative Strength Index for the 14 period. The altcoin is trading in the downtrend zone and below the 50 midline. The price bars of the cryptocurrency are below the moving average, which gives the impression of further downward movement. Ripple is below the 20% range of the daily stochastic. This gives the impression that the downside has reached bearish exhaustion. Buyers are likely to emerge in the oversold region to push prices higher.

Technical indicators:  

Major Resistance Levels – $1.95 and $2.0

Major Support Levels – $0.80 and $0.60

What is the next move for Ripple?

On the daily chart, XRP has fallen to the $1.01 support and has resumed consolidation above the current support. Meanwhile, the downtrend from November 10 has shown a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that the XRP price will fall to the Fibonacci extension level of 1.618 or $0.98.

Disclaimer. This analysis and forecast are the personal opinions of the author and 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. 

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