On the 4 hour chart, Ripple (XRP) has broken the resistance at $0.18 and move up to the high of $0.20500. The XRP/USD trading pair has earlier fallen to the low of $0.12 in the last bearish impulse since March 12. Buyers emerged to push XRP upward to $0.18 when it was regarded as being oversold. Unfortunately, the recent upward move is facing resistance at the $0.20 price level.
The resistance is caused by a historical price level. The market is testing $0.20 historical price of March 8 and January 9. The cryptocurrency may fall as the market respects the historical price level. On the other hand, it may rise, if the level is broken. Perhaps, the upward move will resume after some retracement, if the bulls continue to sustain a price above $0.18.
XRP Shows Strength after Breaching of $0.18 Resistance
On the daily chart, and at a low of $0.12, XRP has risen and broken the $0.18 resistance. The price rebounded at a low of $0.17950 to reach a high of $0.20500. The coin is currently facing resistance at the 26-day EMA. On the downside, if price retraces, it may retrace to the low of $0.18500. On the upside, if the current resistance is breached, the market will rise to a high of $0.25.
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
The pair is in an upward move after a successful breaking of the resistance line. This produces a change in the trend. Ripple is above 80% range of the daily stochastic. The implication is that Ripple is now in the overbought region of the market. Sellers are likely to emerge to push the coin downward. However, XRP is no longer retracing after the resistance at $0.20.
The Relative Strength Index (RSI) Indicator
The 12-day EMA and the 26-day EMA are sloping upward indicating the uptrend. Ripple is currently at level 77 of the Relative Strength index. This indicates that XRP is in the overbought region of the market. As usual, the presence of sellers is unavoidable as the market reaches the overbought region.