Ripple price recovery from weekend lows at $0.1750 hit a wall at the 50% Fibonacci level.
XRP bulls need to push for consolidation above R$0.20 to avert the looming breakdown.
Ripple price finally resumed the uptrend above $0.20 mid through this week following extended consolidation in a narrow range: $0.19 – $0.20. The Consolidation took place after Ripple nosedived from highs above $0.22 to touch lows around $0.1750. Although the recovery above was a welcoming gesture and a ray of hope that gains towards $0.30 were a possibility once again, XRP/USD lost momentum at the 50% Fibonacci level.
Retreat from the Fibonacci retracement level briefly dropped under $0.20. The bearish action, however, stopped $0.1915 averting losses targeting $0.19. At the time of writing, XRP is struggling to stay above $0.20. The prevailing trend is bearish, further putting support at the 38.2% Fibo in jeopardy.
Applied technical indicators also emphasize that the trend is in favor of the sellers. The RSI, for example, is retreating farther below the average (50). If the downtrend continues to the oversold region, expect sellers to gain more traction against the bulls.
XRP/USD 4-hour chart
Consequently, the formation of a rising wedge pattern could be the final blow that disperses the bullish camp, leading Ripple into another freefall to $0.1750 and $0.1600 support areas respectively. For now, the best the buyers can do is to push for consolidation between the 38.2% Fibo and the 50% Fibo. This way they can gather strength and focus on launching another attack on $0.21 and $0.22 and $0.2350 resistance levels.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com