As it is, Ripple is down 80% from their recent highs. Ripple is trading below a Dollar for the very first time after touching highs of $3.53 in early January.
This goes on to tell us how relentless sellers have been and from a technical point of view, prices are actually testing a key and fundamental support level: The middle BB.
While we understand that bears are on overdrive and last week’s candlestick can be used as a reference, the way the week closed was important.
In the weekly chart we can see that prices actually reacted to this main support line which is also the 1st Fibonacci extension level anchored at May’s 2017 highs at $0.46. I must say this, if XRP bears drive prices below the middle BB then $0.46 will be another strong support and would effectively conclude the retest phase of this big bullish break out pattern.
In the daily chart, XRP is at around 78.6% with an unconfirmed double bar bullish reversal forming right on the over-extension that printed on December 14 and 15.
If we also look at the secondary chart, we can see that bearish momentum is waning as stochastics are trending at the oversold territory.
While that cannot be a reason for buying or selling, potential buy pressure can only be confirmed when prices close above the middle BB and 61.8% (at $1.43) which at the moment acts as our immediate resistance level.
Prices are actually confined within the bullish engulfing candlestick that printed on February 2 and as it is, the upper limit of this candlestick will act as our first bullish filter.
We can begin looking for buys now that we are seeing series of higher highs relative to the lower BB and given the nature of price action, I will recommend buying this token if prices close above the minor resistance trend line and $1.43