The Ripple market surprised many traders at the start of the week by gaining 20% in the matter of a few days. Like usual there has been a small sell off, leaving some traders with xrp bags buying at the top. Taking a look at the 1 hour chart to assess the shorter term situation.
There is a bearish flag / pennant painted after the prices dropped through the 10 MA and experienced a bit of a dead cat bounce. RSI is confirming the bearish momentum and I expect another drop into the oversold territory before this correction will be over.
Resistance is solid above 0.00008 btc and I would wait for consolidation above this price range before considering going long on the market again. On the flip side, near term support is weighing in at around 0.000078 btc – 0.0000784 btc.
I am looking for the above mentioned support zone to fail before the price action will start with its descent to previous price levels. These situations are great to gauge the strength of the market. Should the bear flag fail to break to the bottom I will consider the market still quite bullish and will look to resistance for the next move. Safe trades.