Ripple Price to Bounce Off a Confluence of Support at $0.2090?
Ripple price has been seeing some downward pressure in today’s trading. XRPUSD is currently down $0.00405 or 1.88% at $0.21139.
The slide on the cryptocurrency may have been sparked by Ripple Labs CEO Brad Garlinghouse. He outlined the reasons why the cryptocurrency is not a security and defended its credibility as a medium of exchange. In doing so, investors may have been reminded of the ongoing case against the company. A complaint was made against it in August 2019 for selling XRP to retail investors as an unregistered security.
On the four-hour chart, ripple price is seen to be nearing the $0.2100 handle. There seems to be a confluence of support just below the psychological handle. For one, the rising trend line seems to fall at $0.2090. Secondly, the price coincides with the area between the 50% and 61.8% Fib levels when you draw the Fibonacci retracement tool from the low of January 10 to the high of January 11. Lastly, the 100 and 200 SMAs also coincide in this area. Reversal candles may mean that buyers are priming to push ripple price back up to its recent highs at $0.2198.
On the other hand, be wary of a strong bearish close below the trend line. This may mean that resistance at the falling trend line on the daily time frame held. XRPUSD may soon be on its way to support at $0.2000.