After forming a lower high today, Ripple (XAUD/USD) moved back down again. Now we can draw a short-term tentative downside line taken from the high of October 22nd. On the other side, the crypto is now testing its short-term upside support line taken from the low of September 24th. As long as the price remains between the two lines, we will take a neutral approach.
Given that the crypto is currently testing the aforementioned upside line, this increases the chances of seeing it getting broken. However, in order to aim for lower areas, we would have to wait for that break to happen first. Also, a further drop below the 0.2406 zone, marked by the low of October 26th, may strengthen the likelihood of a further slide. If that occurs, the next potential support hurdle could be at 0.2356, a break of which might clear the way for a further move to the 0.2314 level. That level marks the low of October 1st and an intraday swing high of October 2nd.
The RSI and the MACD are currently pointing a bit lower. Also, the RSI is slightly below 50 and the MACD is below zero and its trigger line. The two oscillators suggest increasing downside price momentum, which might support the above-discussed scenario.
On the upside, if the rate rises above the previously-mentioned downside line and then climbs above the 0.2547 barrier, marked by yesterday’s high, that could attract more buyers into the arena, potentially sending the crypto further north. That’s when Ripple might end up moving to the 0.2572 obstacle, or even the current highest point of October, at 0.2618, where the rate may initially stall. That said, if the buying doesn’t stop there, the next possible target could be at 0.2687, marked by an intraday swing high of September 3rd.
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