XRP reversed back into its oscillation range after hitting its nine-month resistance around the $1.3-mark. Thanks to this fall, the altcoin saw a long-term down-channel (white) on its daily chart. Also, it lost the vital $1-mark and flipped it to resistance.
A compelling close above its trendline support (white, dashed) would set XRP up for a test of the $0.75 to $0.79 range. This range represented a confluence of hurdles like the 20-50 EMA and its supply zone.
At press time, XRP was trading at $0.7359, up by 3.1% in the last 24 hours.
XRP Daily Chart
During its latest bearish phase, XRP fell below its near-term EMAs while losing some crucial levels. But the $0.6-support stood sturdy over the last 11 months. In doing so, it registered a 55.08% ROI from 3 to 8 February as it broke out of the channel.
Since then, the altcoin has entered into a steep pullback in a descending channel (yellow). This trajectory led to the first retest of the upper trendline channel (white). Following the same, XRP pictured the morning star candlestick pattern, one that triggered a gradual uptrend over the last few days.
Also, its immediate supply zone stood as a strong barrier for the EMA lines to undertake a bullish crossover.
From here on, any pullbacks would find testing ground near the $0.7-zone, one that coincides with the trendline support (white, dashed). A revival from this zone could propel a retest of its Point of Control (red) before the alt commits itself to a position.
The RSI has strived to overturn the equilibrium since 25 February but failed to find a close above this level. This revealed a bearish edge. Any pullbacks from here would find a floor near the 43-point mark.
Furthermore, the Awesome Oscillator marked lower peaks on its histogram. Also, the histogram plunged below the midline over the last few hours, reaffirming the bearish vigor.
A further dip towards its immediate support could be likely before the bulls gain momentum to challenge its near-term downtrend. Furthermore, keeping in mind XRP’s proximity to its near-term EMAs, the chance of a volatile move in the days to come is high.
Even so, keeping an eye on Bitcoin’s movement and the broader sentiment would be important to complement the aforementioned analysis.
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
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Original Source :ambcrypto.com
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