XRP eventually halted its southbound journey as buyers defended the baseline support at $0.3 while scoring a bullish run within the past few days. The recent Ripple-SEC legal update triggered optimistic sentiment among buyers. Meanwhile, XRP jumped beyond its Exponential Moving Average ribbons on its daily chart.
Nevertheless, sellers might seek to re-join the market to invalidate the green candlestick streak in the upcoming sessions. XRP traded at $0.4638 during this publication, remaining relatively flat within the past 24 hours.
Ripple Daily Timeframe
While on its sideways track, XRP noted consolidations at $0.3 – $0.38 for about three months. After an anticipated bounce back from the baseline at $0.3, the altcoin saw a bullish engulfing candle that welcomed a patterned breakout.
The bounce back recorded a more than 60% growth within a week. As a result, the EMA’s bullish flip confirmed the surged buying strength. Meanwhile, the trend-line resistance has triggered selling rallies within the previous eleven months.
Consequently, the bears might catalyze reversals toward the Exponential Moving Average ribbons. A decline beneath $0.447 might increase this probability. Such developments would have targets at the $0.409 territory. An imminent rebound might retest the longer-term trend-line resistance before trend-dedicated moves.
The RSI (Relative Strength Index) dipped into the overbought territory and printed an anticipated reversal. Continued declines toward the midline might suggest buying pressure ease. Moreover, the CMF (Chaikin Money Flow) formed lower highs during the bull run. Therefore, the indicator bearishly diverged with the XRP price.
Meanwhile, the MACD (Moving Average Convergence Divergence) affirmed a massive bullish superiority. Investors should watch for the possible bearish cross to identify downturn probabilities.
Considering Ripple’s reversal from its longer-term trend-line resistance & CMF’s bearish divergence, XRP might witness a short-term drop. Nevertheless, the amplified buying pressure might see buyers maintain the EMA support to expect the upside from a longer-term standpoint.
Either way, potential targets would stay as discussed. Lastly, watching BTC’s movement & broad sentiment is essential to identify possible bullish invalidation.
Bitcoin recorded recoveries during this publication as it reclaimed the $20K mark. While publishing this blog, BTC traded at $20,248, gaining more than 8% within the past day (Coinmarketcap data).