- Ripple is in a run lower with sellers in control.
- Price action dipped below the monthly R3 resistance.
- Choppy price action ahead with several technical elements coming together.
Ripple (XRP) has been on a downward trajectory since August 15. Price action could not get back up there, and since then prices have shown lower highs. In that push to the downside, Ripple could not hold price-action above the purple descending trend line. The trend line got chopped up several times and looks to have served its purpose for now.
The following support that failed comes from the monthly R3 resistance level at $1.16. Price action dipped below this support this weekend and even looks to be having difficulties in holding this position.
Two supportive technical elements are being chopped up with sellers in control
Buyers now can only look for the following points of interest to get in for a long position, but price action will be limited by the formation of that blue descending trend line. That line will be critical to watch if sellers are still very much in control, as they will add more short positions to defend that descending trend line. The level of interest for both is around $1.09 and $1.05 – a supportive belt that showed its importance already multiple times in the past on August 14, August 18 and August 27.
Expect this to become a battle between buyers and sellers to see who will take over price action or if sellers can stay in control. Short-term buyers could push price action back up, but the blue descending trend line might be too heavy to overcome. Sellers will flock in to add more short positions and try to break $1.05 to the downside.
A dip lower will bring us toward $0.88, where both the 55 and 200-day Simple Moving Average (SMA) are very close to each other, and the monthly R1 resistance level will support the price action. Buyers will be happy to get in at these levels.
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