Ripple analysis: recovery possible above $0.23
12:35, 9 September 2020
Ripple is attempting short-term stabilisation, after the third largest cryptocurrency recently fell towards the $0.23 level.
Ripple analysis shows that bullish MACD price divergence is warning of a potential rebound towards the $0.28 level.
Ripple medium-term price trend
Despite last week’s decline, Ripple still retains its technically bullish status, as the price remains above the XRP/USD pair’s 200-day moving average, around the $0.215 level.
Ripple technical analysis shows that the cryptocurrency has a chance of staging a rebound if the $0.23 support level holds.
The daily time frame shows tentative signs that a double-bottom pattern formation is taking shape. According to technical analysis, the XRP/USD pair could recover towards the technically important $0.25 or $0.28 levels if a double bottom forms.
Traders should note that the price movements of Bitcoin and the broader market are likely to directly impact Ripple’s directional bias over the coming days.
If the ongoing selling continues in the crypto market, then Ripple may see a sustained loss of the $0.23 level, and is likely to test its 200-day moving average. A move under the 200-day moving average could see deeper losses towards the $0.19 and, possibly, $0.18 levels.
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Ripple short-term price trend
Ripple technical analysis over the short term shows that the cryptocurrency is only bullish while the price trades above the $0.28 level. The four-hour time frame shows that bullish MACD price divergence has formed during the recent double-digit decline towards the $0.23 level.
If bulls can anchor the cryptocurrency above $0.23, then the bullish MACD price divergence may be reversed.
Lower time frame analysis shows that the $0.255 and $0.266 levels offer the strongest technical resistance prior to the $0.28 level.
Ripple technical summary
Ripple technical analysis shows that if bulls can hold the price above $0.23, then the cryptocurrency could recover towards the $0.28 level.