Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
Since dropping below the daily 20 EMA (red), XRP has been falling steadily for the past 70 days. The buyers have so far been able to find reliable reasons to trigger a trend-changing rally.
A close below the $0.29-$0.3 range could open doors for shorting opportunities. Should the buyers regain strength at the immediate support, XRP could continue its sluggish behavior in the $0.32-$0.37 range. At the time of writing, XRP was trading at $0.3163, up 3.08% in the last 24 hours.
XRP Daily Chart
The ongoing bearish rally found resistance near the Point of Control (POC, red) as the alt consolidated for nearly a month. On the daily time frame, the bulls have failed to produce a streak of more than four green candlesticks in the past three months.
After hitting its 16-month low at the $0.33 level on June 14, XRP saw a rebound from the lower band of the Bollinger Bands (BB). But the $0.34 resistance denied the alt the opportunity to test the three-month trendline resistance (yellow, dashed).
The price action was relatively close to its 20 EMA. So a volatile move in the coming days should not surprise traders/investors. Any drop below the USD 0.3 zone would open doors to a USD 0.26-$0.29 range in the coming sessions.
The bearish Relative Strength Index (RSI) flipped the 36 level from support to resistance. A drop below the 30 mark could extend the attack before a possible bullish rebound.
Interestingly, the CMF maintained its position above zero. A sustained position above this level could prevent a substantial drop off the charts amid increasing money volumes.
XRP’s decline towards the $0.3 support could spell out a recovery opportunity for buyers. With the CMF hovering above zero, the odds were quite high. in this case, the 20 EMA and trendline resistance could continue to form recovery barriers.
But the broader sentiment could negate these readings. So any drop below the immediate support could extend the downside phase towards the USD 0.26 level.
Finally, it would be important to keep an eye on Bitcoin’s movement and broader sentiment to complement the aforementioned analysis.
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