Ripple Price Prediction: XRP In A Downtrend But Fortunes May Turn Around Soon
Daily Ripple XRP Technical Analysis
- Ripple is about to flash the buy signal in the TD indicator in the 4-hour chart.
- XRP had earlier faced rejection at the 20-day SMA.
Ripple has been on a heavy downtrend for the last four days. The price had earlier jumped up from $0.47 to $0.57 before encountering resistance at the 20-day SMA. However, it looks like the buyers ran out of steam. Let’s take a closer look with technical analysis.
Ripple Sits On 50-day SMA
Over the last four days, XRP has managed to nearly nullify the gains it made between December 16 and December 18. After getting rejected at the 20-day SMA, the price has been on a downtrend until it encountered support at the 50-day SMA. The relative strength index (RSI) is about to dive into the oversold zone, which could trigger a bullish comeback.
Image: XRP/USD daily
Speaking of a bullish comeback, the 4-hour chart is about to flash the TD sequential indicator's buy signal with a red-nine candlestick. This should prompt the buyers to re-enter the market.
Image: XRP/USD 4-hour
Key Price Levels To Watch
The 20-day SMA ($0.56) is a crucial level that the buyers must overcome if they fulfill the buy signal. However, the 50-day SMA must hold firm to ensure that the price doesn’t fall any further.