The weekly chart of Ripple, XRP, shows that it is in a consolidation phase around the 50% Fibonacci retracement level at $1.2266 recovering from the correction of April 11 - July 18. The last weekly candlestick is bearish, and this may be a signal of exhaustion of the bullish force or a correction towards the 38.2% Fibonacci level in the short term.
Given that BTC is falling from the psychological level of $50,000, and other cryptocurrencies that are correlated to BTC have the same trajectory, it is likely that XRP will fall from the current price levels to the 21 SMA zone located at 0.9944.
At the SMA of 21 (0.9944), a technical rebound is expected, and it could be a good signal to buy as the correction will end and investors will want to buy Ripple back at low prices in anticipation of a new bullish cycle to the 61.8% Fibonacci.
We believe that a good point to buy XRP is the psychological level of $1.00. There is also the SMA of 21, and from there it could rise to the strong resistance at 61.8% Fibonacci at $1.40.
On the contrary, at this time it is better to sell because the eagle indicator on the 1-hour chart is showing a bearish signal, and the weekly chart shows exhaustion of strength.
Support and Resistance Levels for August 24 - 25, 2021
Resistance (3) 1,3272
Resistance (2) 1,2998
Resistance (1) 1,2419
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Support (1) 1,1887
Support (2) 1,1247
Support (3) 1,0906
The material has been provided by InstaForex Company - www.instaforex.com