Ripple (XRP) Is Setting Up a Possible Rally. Is It Time to Correct?

In the last 48 hours, Ripple (XR) has a breakdown as the crypto fell to $0.17501 low. Price made an upward correction above $0.19. Initially, the bulls made concerted efforts to penetrate the $0.20 resistance but were repelled as price reached $0.19000 low. The bulls are making a fresh upward move to retest the $0.20 resistance. XRP will rally above $0.22 if the bulls are successful above $0.20 resistance.

Conversely, if the bears turn around and break below $0.19 support, XRP will drop to $0.18 or $0.17500 low. Presently, the upward move is facing resistance at the 12-day EMA. XRP will fall and retest the $0.19 support if the bulls fail to break above the 12-day EMA. In the long run, the market is expected to be on a downward move.

XRP trends lower, sellers threatened to short further

On the daily chart, XRP has been consolidating above $0.21 support before the bears broke the current support and support line to reach the $0.18 low. When price breaks and closes below the support line; it implies that the downward move may continue. However, after the breakdown, the price has been fluctuating above $0.19 support. On the upside, a break above $0.20, will mean the resumption of the uptrend. Similarly, a break below $0.19 indicates the continuation of the downtrend.

Key Levels to Watch

• Key Resistance Zones: $0.35, $0.40, $0.45
• Key Support Zones: $0.25, $0.20, $0.15

The Stochastic Indicator

XRP is above 40% range of the daily stochastic. This implies a bullish momentum. The bullish momentum will continue if the bulls overcome the resistance at $0.20.The price bars are below the 26-day EMA and the 12-day EMA, indicating that the market is in the bearish trend zone.

The Relative Strength Index (RSI) Indicator

XRP has fallen to level 45 of the Relative Strength index. This indicates that the market is in the downtrend zone and below the centerline 50. The cryptocurrency may continue the downward move if the $0.19 support cracks.