Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
XRP rose above the $0.64 level after flipping this level from resistance to support in recent days. Bitcoin’s bullish momentum over the past few days has caused XRP to climb back into a bearish channel. As of going to press, the price reached an area where sellers could step in and force a pullback. In other news, a prominent attorney gave his opinion on what the documents unsealed by a court order might mean in the SEC v. Ripple case.
In the past two weeks, XRP has fallen below the bearish channel (yellow) in which XRP has been trading since August 2021. Following Bitcoin’s recent surge, XRP also managed to push itself back above the channel low of $0.64 and retest it as support for another strong leg up.
This upward move may encounter some resistance in the $0.92 area, which was just above the center of the channel (dashed white) and the horizontal resistance level of $0.88.
The Visible Range Volume Profile highlighted that the Point of Control was at $1.08 with the $0.9-$0.95 area also having notable trading volume over the past six months. This node could see price rejected and fall back to the previous high volume trading node at $0.81. $0.81 also has some concurrence with a level that has acted as a support and turned into resistance in January.
The 12-hour RSI stood at 84, in overbought territory. This does not indicate an imminent relapse. No bearish divergence was observed and the Awesome Oscillator climbed sharply above the zero line.
While momentum indicators reflected the strong gains of recent days, the CDV showed that demand had risen significantly over the same period.
All in all, there was an argument that XRP could see even more profits in the coming weeks.
Indicators pointed to strong momentum and demand behind the rise from $0.64 to $0.9 in recent days. Bitcoin was also bullish, although there was a possibility that BTC could revisit the $42k or $39k area in the coming weeks. The area just below the Value Area Low (VAL) at $0.81-$0.82 could be a buying opportunity.
This post If XRP Hits a Resistance Level, Profit Taking May Begin Soon
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