Ripple’s XRP has swung into a short term consolidation stage as the price tries to determine what the next line of action should be. Although the price has recently recovered from an insignificant bear trap which pulled below the $0.2 mark.
However, buying pressure seems not enough to push prices further upwards from the support at the long-held $0.203 level where prices have dominated the most in the past few days.
At the moment, XRP escaped the resistance at $0.198 to establish support above it at $0.2. A struggle between market buyers and sellers is keeping XRP/USD within close range at $0.20 and $0.21. As prices are yet to clearly define the next line of action, it may be difficult to overcome the long-term engagement the coin is gradually setting at this level.
For instance, if prices were to fall below this level in its next move, the resistance created may overwhelm the bulls and further price plunge may come into play.
Also read Ripple price prediction 2020
Further, if prices were to rise above this engagement point, the bears may face evident difficulty in driving them downwards in the short term. This explains that XRP’s next momentum is highly crucial to future price prospects. At present, the coin is trading for $0.203 with a market cap of $8.97 billion amid $1.08 billion 24 hours exchange volume.
XRP/USD Price Chart
On the 4-hour chart below, there is a strong price action around the 0.236 Fibonacci retracement level. Prices initially found support here on June 2, 17:30 hours UTC and haven’t left the area ever since. Bulls launched an offensive towards the $0.21 area but couldn’t stay above the level much longer than a couple of hours. Above 38.2% Fibo level, additional resistance lies at the 0.5 Fibo level.
It is highly possible that buying pressure sets in. Eventually, XRP would have to test the 0.5 fib level again in the near term. Above this, further resistance is expected at the 78.6% fib level.
Period 9 moving average is trending directly in between concurrent candles. This means that the market is evenly distributed. However, the formation of a bearish candle above the M9 indicates major market indecision. The only indication of a price prospect is the RSI falling below the 50. A bit of selling pressure will drag prices towards the overall condition where prices may seek to find support at $0.198 in the near term.