XRP: Why this level can trigger a change in direction for the positive

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Dis­claimer: The find­ings of the fol­low­ing analy­sis are the sole opin­ions of the writer and should not be con­sid­ered invest­ment advice.

XRP wit­nessed a bear show after the Point of Con­trol (POC, red) turned down all bull­ish revival hopes from the $0.77-level. This rejec­tion pro­voked a string of red can­dles over the last ten days.

The recent bear­ish engulf­ing can­dle­sticks have cre­at­ed a stiff resilience in the $0.65-$0.7 range. A rever­sal from the cur­rent sell­ing spree could result in a poten­tial falling wedge break­out that could face resis­tance in this range. At press time, XRP was trad­ing at $0.5917, down by 4.57% in the last 24 hours.

XRP Daily Chart

Source: Trad­ingView, XRP/USDT

The sell-off stirred at the $0.86-ceiling trans­lat­ed into a 39.14% descent over the past 33 days. Thus, after dip­ping below the POC, XRP touched its three-month low on 30 April.

Over the last few days, the dig­i­tal cur­ren­cy saw a falling wedge (yel­low, rever­sal pat­tern) set­up. Fur­ther, the 50 EMA (cyan) trig­gered a strong sell­ing point that bol­stered the south­bound ral­ly. The cur­rent sce­nario led XRP’s price to fall toward the $0.58-$0.6 sup­port range. 

While the bulls have upheld this range for over nine months, they would aim to reignite some buy­ing pres­sure at the cur­rent sup­port. Should the sell­ing pres­sure con­tin­ue to ease, XRP could test the upper trend­line of the cur­rent wedge whilst aim­ing for a $0.63-mark retest. With the widen­ing gap between 20 EMA (red) and 50 EMA, the buy­ers are yet to claim a free hand with their rallies.

Rationale

Source: Trad­ingView, XRP/USDT

The RSI depict­ed sub­stan­tial­ly weak read­ings after swoop­ing toward the over­sold region. While the Index matched its Jan­u­ary lows, a revival from the cur­rent lows seemed only plausible.

Fur­ther­more, the CMF pro­ject­ed a bull­ish behav­ior on its troughs over the last week. This tra­jec­to­ry result­ed in diver­gence with the price that favored the buy­ers. Any close above the zero-mark would help buy­ers steer the trend toward the north.

Conclusion

Con­sid­er­ing the fusion of XRP’s bull­ish diver­gence with CMF and the stur­di­ness of the $0.58 sup­port, the alt could eye a recov­ery phase in the com­ing times. The south-look­ing near-term EMAs would con­tin­ue to pose hur­dles in this revival.

Final­ly, keep­ing an eye on Bitcoin’s move­ment and the broad­er sen­ti­ment would be vital to com­ple­ment this analysis.

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