- Summary:
- Ripple price has been falling as resistance on the falling trend line held. XRPUSD is currently testing a confluence of support. Will $0.2000 hold?
Ripple price has been trading lower after the cryptocurrency surged on news of a deal with Siam Commercial Bank (SCB). The news is seen to increase demand for ripple as the bank develops an app using its blockchain. However, despite this, ripple was unable to attract enough buyers to push XRPUSD above the trend line resistance. Does this mean that ripple price is on its way down to its December 17 lows at $0.1809?
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A Confluence of Support at $0.2000 of XRPUSD
A closer look at the 4-hour chart shows that the cryptocurrency may find bids in today’s trading. As of this writing, XRPUSD is testing a confluence of support around the $0.2000 handle. For one, the cryptocurrency previously made highs at this level. It also coincides with the 61.8% Fib level when you draw the Fibonacci retracement tool from the low of January 3 to the high of January 7. It also seems to be testing the 200 SMA for support. If there are not enough buyers at this level, the next near-term support on XRPUSD is around $0.1913. This price seems to coincide with the short-term rising trend line which becomes apparent when you connect the lows of December 17 and January 3. Reversal candles around these levels could mean that buyers are looking to push ripple price back up to $0.2254.