Ripple Drops 38% From September Highs; Time To Buy The Dip?
Ripple extends the bearish leg to $0.86 but recovers gradually to $0.94.
A confirmed breakout above $0.95 would affirm the bulls’ grip on the price for gains eyeing levels above $1.
Ripple explored the levels below $1 following the bearish wave that started hitting the market on Sunday. The cross-border token had lifted to September highs of $1.4 before a correction trimmed losses. Initially, support between $1 and $1.1 mitigated the impact of the bearish wave.
Nonetheless, the last two days have been highly volatile, with Bitcoin dropping from above $48,000 to nearly $42,000. Meanwhile, XRP plunged to test support at $0.9, but the candlewick hit lowers $0.86 for the first time since August.
Ripple Could Be Preparing An Upswing To $1
The support at $0.9 currently ensures that Ripple does not drop to the following critical demand zone, the red band slightly below $0.8. At the same time, it ensures that buyers have the upper hand as they focus on the rebound to $1.
Ripple is trading at $0.94 at the time of writing amid a bullish building momentum. The Moving Average Convergence Divergence (MACD) emphasizes the bearish grip at the moment. Still, there is a possibility of a buy signal coming into the picture, especially if Ripple gains momentum above $0.95.
It is essential to watch out for the 12-day Exponential Moving Average (SMA) crossing above the 26-day EMA. Moreover, a consistent MACD movement toward the mean line would add credence to the optimistic outlook.
As Ripple recovers, some delay should be anticipated at $1, where some holders will try to break even, dampening the selling pressure. However, the most substantial supply zone is the red band on the four-hour chart. A break above this area could liberate XRP and pave the way for another leg up to $1.2 and later to $1.4.
On the downside, if losses extend below $0.9, Ripple will quickly drop to the green band, whereby bulls will put up a fierce fight, perhaps sending the cross-border token significantly upward.
Ripple Intraday Levels
Spot rate: $0.94
Trend: Bullish
Volatility: Expanding
Support: $0.9 and $0.8
Resistance: $1 and $1.1
