The XRP/USD daily chart below shows Ripple trades sideways against the U.S. Dollar between the 23.6% Fibonacci at $0.49 and the %50 Fibonacci at $0.57 since May 15.
Ripple Technical Analysis Daily Chart
As of writing, Ripple trades at about $0.53, stabilizing below the 38.2% Fibonacci. EMA 50 (in red) is the first barrier that might keep the XRP/USD price from falling.
The technical indicators in the daily chart suggest a neutral market.
- The awesome oscillator bars are in red, but the size of the bars is small, clinging to the zero line, depicting 0.009 in the description. This means uncertainly in the trend.
- The relative strength index (RSI 14) shows a value of 51, slightly above the middle line, suggesting uncertainty.
- The Stochastic in the daily chart is no exception. The %K line value is around 67, signifying a weak momentum but bullish.
These developments in the technical indicators in the daily chart tell us the XRP/USD doesn’t have a significant trend, and the sideway movement will likely resume unless there is a notable break out from one of the key levels below:
- Key support: The 23.6% Fibonacci retracement level at $0.48
- Key resistance: The 50% Fibonacci retracement level at $0.57.
Ripple Technical Analysis 4-Hour Chart
A smaller time frame, such as 4 hours, provides a more detailed analysis because the price movements and technical indicators show more momentum, and the smallest changes in the trend can be monitored closely.
As shown in the XRP/USD 4-hour chart above, the price dipped below the immediate resistance at 0.546 and the 38.2% Fibonacci. This means that despite the sideway market, the trend is ready to visit the key resistance at $0.57.
In addition to the price action and the Fibonacci analysis, the technical indicators also indicate the likelihood of a price dip.
- The awesome oscillator bars are red and declining toward the zero line; the description shows a value of 0.004 and decreasing.
- The RSI (14) shifted below 50, suggesting bearish momentum with showing a value of 46.
The stochastic oscillator (14.3.3) holds the key to our technical analysis. The indicator was overbought but returned below 80 in today’s trading session. At the moment, the %K line records 64 in the description. This suggests the XRP/USD price will likely fall to key support.
Ripple Resistance at $0.53 Amid Bears Taking Control
From a technical standpoint, Ripple trades sideways between the key support and the key resistance, $0.48 and $0.57, respectively. If the current selling pressure maintains the price below $0.54, the price of Ripple will likely dip to the $0.48 key support, backed by 23.6% Fibonacci.
If this scenario comes into play, traders and investors should closely monitor the key resistance at $0.48 because if bearish pressure exceeds this level, the road to April’s all-time low at $0.40 can be paved.
Ripple Bearish Scenario
Conversely, if the Ripple price surpasses the May 21 closed price at 0.546, initially, it can target the key resistance at $0.57. With further pushes, the secondary target could be the 61.8% Fibonacci at $0.61.
Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.
