After echoing the market-wide rebound, XRP’s breach above the USD 0.34 level helped buyers test the direct supply zone last week. Meanwhile, buyers struggled to break the obstruction of the 50 EMA (cyan) in the daily chart.
As a result of the previous breakout, buyers would now aim to maintain the $0.344 level. A close above this level would be critical to getting the most out of XRP’s future moves. At the time of writing, XRP was trading at $0.3458, down 4.01% in the past 24 hours.
XRP Daily Chart
After falling to a 16-month low at the USD 0.33 level on June 18, XRP bounced off the USD 0.3 support. But with the supply zone (green, rectangle) curtailing buying rallies, the altcoin danced around its short-term EMAs and entered low volatility.
In recent weeks, XRP has seen a double-bottom structure that helped buyers continue a retest of the 50 EMA. Also, with the 61.8% Fibonacci level limiting buying power, XRP has struggled to trade above the EMAs.
A close above USD 0.344 could help the bulls retest the USD 0.37 zone in the coming sessions. The buyers had to ramp up volumes to find a close above the supply zone to turn the bearish story in their favor.
However, any decline below the immediate support could delay the expected recovery by several days.
The Relative Strength Index fell below the midline to show a diminishing buying advantage. While the outlook was neutral, buyers had to close above this line to regain their power.
Interestingly, the accumulation/distribution lines maintain the immediate support level despite the recent losses. A break below this support would confirm a slowed accumulation on the chart. Nevertheless, the ADX showed a weak directional trend for XRP.
XRP’s return to the double bottom breakout point could present a comeback opportunity. In this case, the potential goals would remain the same as discussed. The threats along the indicators could delay this expected recovery.
However, it is important to keep an eye on Bitcoin’s movement and broader sentiment to determine the chances of a bullish invalidation.
This post XRP traders can profitably time their entries to leverage this setup
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