158 total views
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
With the 23.6% Fibonacci level shunning the recent buying efforts, XRP’s bearish pennant saw a down breakout on the daily timeframe.
Now that it fell below its Point of Control (POC, red), the altcoin approached a vital price zone in the $0.384-zone. The buyers have held up this level for over a year. A close below the immediate demand zone would provide shorting opportunities.
However, if the buyers capitalize and recoup at the trendline support (yellow), the alt could see a bounce back. At press time, XRP traded at $0.3856.
XRP Daily Chart
The altcoin now stood at a critical juncture in its extended bearish rally. For over two months, the buyers have not had an opportunity to spur a streak of more than three green candles during the revival phase.
As this south-looking journey approached its 15-month support at the $0.3839-level, XRP could eye at two outcomes in the coming sessions.
After a recent bearish engulfing candlestick from the bearish pennant breakout, the alt fell below the POC. Further, the selling volumes have been relatively higher than buy orders over the last three days.
Any close below the immediate baseline would give sellers enough thrust to open a doorway toward the $0.33-zone.
On a rather brighter side, the current price was over-extended from its 50 EMA (cyan). Over the past year, the price action has seen a bounce back after dipping below 27% from its 50 EMA. This reading alongside the sturdiness of immediate support can trigger a near-term revival. In this case, a close beyond the $0.3914 could expose XRP to an upside toward the $0.42-$0.44 range.
The Relative Strength Index (RSI) was in compression near its oversold region. Its current state depicted a robust bearish influence. The bulls still needed to overturn the 33-resistance to make way for a short-term bull run.
The CMF has struggled to find a sustained close above the zero-mark for nearly two months. Its recent peaks undertook a bearish divergence with the price. Any pullbacks could add more fuel to the existent bearish fire.
The alt’s drop toward its 15-month support has mainly opened up two opportunities for the traders/investors.
With the triggers remaining the same as above, a potential bounce-back could find its way toward the $0.42-$0.44 level. And a downside short could see a take-profit opportunity at the $0.3-zone.
Finally, keeping an eye on Bitcoin’s movement and the broader sentiment would be important to complement the aforementioned analysis.
Adblock test (Why?)
Blockcast.cc does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice or recommendations. Every investment and trading move involves risk, you should conduct your own research when making a decision.