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Oversold XRP Aims to Fill FVG if $0.519 Holds

FxNews—Ripple (XRP) is in a bear market, with its price below the 50- and 100-period simple moving averages. As of this writing, the XRP/USD pair trades at approximately $0.535, near the $0.519 (October 8 Low) resistance.

The 4-hour price chart below demonstrates the price, support, resistance levels, and technical indicators used in today’s analysis.

Ripple (XRP) Technical Analysis - 23-October-2024
Ripple (XRP) Technical Analysis – 23-October-2024

Ripple (XRP) Technical Analysis – 23-October-2024

Ripple (XRP) Technical Analysis - 23-October-2024
Ripple (XRP) Technical Analysis – 23-October-2024

The primary trend is bearish because Ripple’s price is below the Ichimoku Cloud and the aforementioned moving averages. However, the robust selling pressure drove the Stochastic Oscillator into oversold territory, as the indicator depicts 8 in the description. This means XRP is in an oversold state, and it might erase some of its recent losses.

  • Furthermore, the Awesome Oscillator histogram is red, below the signal line, which indicates that the bear market prevails.
  • As for the Harmonic pattern, the 4-hour chart formed a Butterfly pattern, a signal for trend reversal.

Overall, the technical indicators suggest the primary trend is bearish, but the price of Ripple (XRP) can potentially rise and test the upper resistance levels. 

Ripple (XRP) Forecast – 23-October-2024

Ripple (XRP) Forecast - 23-October-2024
Ripple (XRP) Forecast – 23-October-2024

The Ripple price exceeded the lower line of the Bollinger Bands indicator, supporting the Stochastic’s oversold signal. From a technical perspective, XRP has the potential to test the Fair Value Gap area at $0.535 (October 20 low) if the $0.519 support holds. Moreover, this demand zone can provide a decent entry point for retail traders and investors to join the bear market, noting that the next bearish target could be the October 3 low at $0.5.

Please note that the bearish outlook should be invalidated only if XRP/USD exceeds the $0.56 (October 17 High) critical resistance.

Ripple (XRP) Support and Resistance Levels – 23-October-2024

Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.

  • Support: 0.519 / 0.50
  • Resistance: 0.535 / 0.566

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