Here’s how XRP traders can leverage this structure to remain profitable
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
Since slipping below its daily 20 EMA (red), XRP has been on a consistent slump over the last 70 days. The buyers have been able to find reliable grounds to trigger a trend-altering rally yet.
A close below the $0.29-$0.3 range could open doorways for shorting opportunities. Should the buyers recoup their strength at the immediate support, XRP could continue its sluggish behavior in the $0.32-$0.37 range. At press time, XRP traded at $0.3163, up by 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 timeframe, the bulls have not been able to provoke a streak of more than four green candlesticks in the last three months.
After poking its 16-month low at the $0.33-level on 14 June, XRP saw a bounce-back 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 near its 20 EMA. Thus, a volatile move in the coming days should not surprise the traders/investors. Any decline below the $0.3-zone would open doorways toward the $0.26-$0.29 range in the coming sessions.
The bearish Relative Strength Index (RSI) flipped the 36-level from support to resistance. A fall below the 30-mark could extend the onslaught before a possible bullish revival.
Interestingly, the CMF maintained its position above the zero-mark. A sustained position above this level can prevent a substantial downfall on the charts amidst the increasing money volumes.
XRP’s drop toward the $0.3 support could transpire into a rebounding opportunity for the buyers. With the CMF swaying above the zero-mark, the chances were rather bright. in this case, the 20 EMA and the trendline resistance could continue posing recovery barriers.
But the broader sentiment can negate these readings. So, any fall below the immediate support could extend the decline phase toward the $0.26 level.
Finally, keeping an eye on Bitcoin’s movement and the broader sentiment would be important to complement the aforementioned analysis.