Just recently, ripple price soared by 11% in a single day’s trading and broke resistance at a long-term trend line. While XRPUSD is still above the said trend line, it is trading 4% lower today. Does this slide indicate the start of a reversal or is this nothing more than just a retracement?
On the hourly time frame, we can see that ripple price is currently finding support at the 61.8% Fib level (when you draw the Fibonacci retracement tool from the low of January 13 to the high of January 14). XRPUSD also tapped the 100 SMA earlier. If support does not hold, the cryptocurrency still has some room to trade lower to around $0.2180 where there seems to be a confluence of support. This price is between the two SMAs with the other one being the 200 SMA. It also seems to coincide with the rising trend line that you get when you connect the lows on XRPUSD on January 10 and January 13. Reversal candlesticks around this price could indicate that there are buyers in the market who could be looking to push ripple price back up to $0.2450.
On the other hand, a bearish close below the 200 SMA at $0.2140 could mean that what we’re seeing on XRPUSD is a reversal. It may not take long for the cryptocurrency to fall to its December lows at $0.1803.