April 22nd, 2019
Ripple recently found support $0.3149 at the end of the consolidation phase last week. An upward correction ensued from the level breaking above the 100 simple moving average (SMA) 1-hour. This spiked more gains above the resistance at $0.3350 while additional gains brushed shoulders with $0.3500 but the trend culminated in yet another slide below the 100 SMA.
Falling Wedge Pattern Formation
The decline from the high at $0.3500 slipped below $0.3200 support completing the formation of a falling wedge pattern. This is considered as a bullish reversal pattern in technical analysis. A breakout above the wedge resistance on Monday sent XRP/USD in an engulfing candle past $0.3250 hurdle. The price tested 100 SMA 1-hour resistance, however, a retracement occurred marginally below $0.3350.
Ripple Short-term Outlook
A look at the chart shows that XRP/USD technical level is still intact in spite of the correction from the intraday high. The moving average convergence divergence (MACD) is almost crossing into the positive region. Besides, the increasing divergence shows that the trend is in favor of the bulls who currently are battling the 100 SMA 1-hour resistance.
The relative strength index (RSI) in the same range has recovered incredibly from the lows around 20.17 recorded on April 21. The surgeon Monday has seen it touch the oversold (70.00) before retracing to 61.10. A direction change of the signal to the upside shows that the buyers are gaining traction and could push the price above $0.3350 in the coming sessions.
The initial support has been established at $0.3200. If the sellers happen to clear this zone, second support lies at $0.3149 (last week’s support). Extended declines could test $0.3100 as well as $0.3000 (key support).
Ripple Price Key Technical Indicators:
MACD 1-hour: +0.0001229.
RSI 1-hour: 56.87.
100 SMA 1-hour: $0.3348.
Support 1: $0.3250.
Support 2: $0.3200.
Support 3: $0.3149 (previous week support).
Resistance 1: $0.3350 (Intraday high).
Resistance 2: $0.3400.
Resistance 3: $0.3500 (supply zone).