- Ripple price strongly defends $0.26 support as sideways trading commences.
- The consolidation above $0.26 is likely to set the framework for the next rally targeting $0.30.
Ripple is settling down after a couple of days of rampage across the cryptocurrency market. The market has been painted red by one massive brush for two days in a row. Ripple has continued to move farther and farther away from the recently established new 2020 high at $0.3463.
All the tentative support areas including $0.32, $0.30 and $0.28 have been left shattered and turned into strong resistance zones. Hopes that $0.27 would be saving grace was also dealt a blow on Tuesday as the price extended the bearish leg towards $0.26.
XRP/USD daily chart
In the meantime, XRP/USD is dancing at $0.2644 following a shallow recovery from the intraday low at $0.2615. The support zone between $0.26 and $0.2650 has been tested a few days, which means, further downward movements are unlikely.
Advancement towards $0.30 might take a while, besides, according to the prevailing technical picture, a sideways trading action could the next direction Ripple price takes. For instance, the Relative Strength Index appears to have found support at 30. Reversal towards 50 has not been forthcoming but the RSI is settling in a leveling motion below 40. In other words, XRP/USD is ready for consolidation in the next few sessions.
The double-cross of the moving averages also emphasize on the apparent bearish grip. Nonetheless, if the price stays above $0.26, bulls will have a chance to gather the much-needed strength to force a breakout above $0.27. Both the 50 SMA and the 100 SMA will hinder growth beneath $0.28 but with the right volume, the journey to $0.30 could be a smooth one.
Ripple Key Levels:
Spot rate: $0.2648
Relative change: -0.00596
Percentage change: -2.2%
Trend: Sideways trading
Volatility: Low
Support Levels: $0.26 and $0.25
Resistance levels: $0.27, $0.28 and $0.30
Image from TradingView
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