Ripple bull seems to have temporarily vacated the markets as XRP tests lower prices below the critical $0.2 mark. After days of struggling to stay afloat the $0.21 area, XRP has finally given up its dreams of breaking the strong resistance level and is now looking to find support at 0 Fibonacci levels.
Although support may hold at $0.2, XRP will not be able to escape the inbound bear market following a bullish price correction. Higher prices got rejected at the 0.5 Fibonacci retracement level where the price aimed at surpassing $0.21. Failure to break the resistance resulted in a price crash through two other levels of support at 38.2% and 23.6% Fibonacci levels respectively.
Ripple is currently trading at $0.202 against the US dollars while the trading pair XRP/USD lost 1.5% within the last day. Also, market capitalization dropped in response to $8.95 billion amid 1.13 billion 24 hours exchanged volumes.
Ripple Price Chart
The short term possible movement is bearish. Although presently, the market is highly unstable with three consecutive Dojis being printed below the M9 trending line. A breakout of prices beyond the M9 will most likely push the price a bit upwards. However, such a push will not be enough to touch $0.21 where a major resistance lies at 0.5 Fibonacci retracement level.
Lower prices are desperately testing the lower 0 Fibonacci level. Below this area, support lies even lower. Failure to find support here will instigate a free fall of prices towards $0.195 as no obvious support lies between $0.2 and $0.195. This is a major area to watch as selling pressure takes over the markets.
It is however uncertain when the buyers will resume. However, a push towards 23.6% Fibo level will be good in the short term. Beyond this level, buyers may look to reset an assault towards $0.21 at 38.2% fib level.
On the 4-hour chart, the Resistance Strength Indicator has resumed an uptrend. The RSI is currently looking to break above 50.0 RSI level. If this occurs, then buying pressure may send prices towards $0.215 mark.