After experiencing strong buying interest in the first days of April and making its way to test the 0.3749 level, Ripple (XRP/USD) sold off and continues now to trade below a short-term downside resistance line drawn from the peak of April 5th. That said, on a somewhat bigger picture, the crypto is still trading above its medium-term tentative upside support line, taken from the low of January 28th, which XRP/USD tested and slightly overshot this morning, but quickly got back above it. The level that was reached during today’s sell off was near the 0.2925 hurdle, marked by the lows of February 12th and 17th. Even though the price did have a strong slide lower, still, as long as the crypto continues to trade above the aforementioned upside line and doesn’t close below it, we will see this as a possibility for the bulls to step in and push Ripple back up again.
As mentioned above, if XRP/USD moves a bit lower, but fails to close below the previously-mentioned upside line, the bulls might take advantage of the lower price and drive the crypto back up. But in order to get comfortable with slightly higher levels, we would first like to see a break above the 0.3030 barrier, which marks the lows of March 28th and 29th. If the buying interest starts picking up again, that’s when the price might test the 0.3070 obstacle, a break of which could lead Ripple towards the 0.3145 zone, marked by the low of April 15th. Initially, we may see the price stalling around there, or even retracing back down for a bit. But if the bears are still feeling weak, the buying could resume and XRP/USD may push above the 0.3145 area and travel towards the 0.3205 hurdle, which is near the aforementioned downside line.
Alternatively, a break of the medium-term upside line and a price-drop below the 0.2925 support zone could spook the buyers from the field, at least for a while. The next obstacle in Ripple’s possible move lower might be around the 0.2845 area, a break of which could send the price further down. This is when we will consider a possible test of the 0.2790 level, marked by the low of January 28th.
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