The crypto market has experienced a deep correction within the last two days. A downward movement from the most of $0.392 on August 17 caused Ripple to reduce a lot more than 13% of its market capitalization during this writing.
The Weekly Chart
After three weeks of swinging below horizontal resistance at $0.39 (in red), the bears finally aggressively pushed the purchase price down. This formed a huge red daily candle during the last two months. The main element is that the pair has reached support that coincides with the prior bottom. Technically, a bullish trend often reverses each time a lower high and lower low appear on the chart. If the bulls neglect to defend this horizontal support at 0.33 (in green), then your formation of a bearish structure is triggered. In this scenario, another support at $0.3 (in white) is going to be retested after greater than a month.
On the contrary side, unless Ripple can flip $0.39, the beginning of a substantial bullish trend is unlikely.
A third scenario is that traders who’ve taken short positions book their profits. This escalates the price to around $0.36, which may be considered a pullback. If the pair can close above this level, the bulls could have another possiblity to test the descending line resistance (in yellow).
Currently, the bears have significantly more control on the market, also it remains to be observed should they can defeat the bulls, that are defending $0.33.
Key Support Levels: $0.33 & $0.30
Key Resistance Levels: $0.36 & $0.39
Daily Moving Averages:
The XRP/BTC Chart
The XRP/BTC chart shows the purchase price moving in the descending triangle (in yellow). This pattern is frequently considered a bearish one. Notably, the bulls have up to now powerfully defended the horizontal support at 1,500 SATs, combined with 100-day moving average line (in white).
Suppose the buyers can break the triangles resistance line (above 1700 SATs). In cases like this, the bullish momentum will dominate the marketplace. The mark of this type of move could be 2000 SATs.
Key Support Levels: 1500 SATs & 1370 SATs
Key Resistance Levels: 1700 SATs & 2100 SATs
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Cryptocurrency chartsby TradingView.