After XRP’s 37% fall over the past month, investors need to look out for this level

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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.

Wit­ness­ing an expect­ed men­ac­ing bear­ish response from the $0.9‑cap, XRP con­tin­ued to under­mine buy­ing ral­lies on its south­bound tra­jec­to­ry for over a month. Cur­rent­ly, gains have been min­i­mal as the alt’s mar­ket hoped near its long-term base­line and wit­ness­es a clash between buy­ers and sellers.

Look­ing at the stur­di­ness of the $0.5‑level for the past few months, XRP would aim to stall the recent sell-off. In doing so, the buy­ers could aim to over­turn the bounds of its near-term EMA. At press time, XRP was trad­ing at $0.5713, down by 4.02% in the last 24 hours.

XRP 4‑hour Chart

Source: Trad­ingView, XRP/USDT

The sell-off ini­ti­at­ed at the $0.9‑ceiling tran­spired in a 37.47% drop over the past month. Thus, after falling below its Point of Con­trol (POC, red) XRP poked its three-month low on 8 May. In an attempt to hin­der the south­bound ral­ly, buy­ers induced a green can­dle but failed to back it up on height­ened volumes.

Over the last three days, the dig­i­tal cur­ren­cy saw a bear­ish pen­nant set­up on the 4‑hour time­frame. The 20 EMA has offered quite a strong sell­ing point that dis­re­gard­ed most recov­ery attempts in the past month. The cur­rent sce­nario led XRP’s price to fall toward the low­er band of the Bollinger Bands (BB) on the 4‑hour timeline.

There are good chances for bulls to recoup their grounds from the cur­rent lows and pro­pel a short-term ral­ly. A revival from the $056-mark could cause a test of the 20 EMA. To mod­i­fy the broad­er trend in their favor, the buy­ers still had to find a way to break the bonds of the $0.59-level. With the upper and low­er bands of BB look­ing to con­strict volatil­i­ty, XRP could enter a tight phase in the com­ing sessions.

Rationale

Source: Trad­ingView, XRP/USDT

The Rel­a­tive Strength Index high­light­ed a grad­ual down­trend toward the over­sold region. A revival from the 30-mark sup­port could open up chances for a poten­tial recov­ery on the charts.

Also, the CMF saw an uptick in the last few hours, but a rever­sal from the 0.04-level would con­firm a bear­ish diver­gence with price. An extend­ed recov­ery beyond the zero-line could give XRP a well-need­ed push in the com­ing times.

Conclusion

In view of the ease in sell­ing pres­sure at the $0.56-mark along­side the over­sold read­ings on its BB, XRP could see a short-term push on its charts. But with the 20 EMA refrain­ing from look­ing south, the bulls still had to boost their game in order to alter the wider trend.

Last­ly, keep­ing an eye on Bitcoin’s move­ment and the broad­er sen­ti­ment would be impor­tant to com­ple­ment the afore­men­tioned analysis.

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