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Likelihood of XRP repeating history from this resistance level

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XRP correlated with the market-wide growth in the past week in its recent rising wedge recovery in the daily chart.

Meanwhile, the buyers found a close beyond the chains of the 50% Fibonacci level and eyed to test the immediate supply zone (green, rectangle). The close above the 20 EMA has echoed the recent uptick in buying pressure.

A close above or below the $0.36 zone would be critical to leverage XRP’s future movements. At press time, XRP traded at $0.3647, up by 4.65% in the last 24 hours.

XRP Daily Chart

Source: TradingView, XRP/USDT

After dropping toward its 16-month low at the $0.33-level on 18 June, XRP rebounded from the $0.3-support. But with the 61.8% Fibonacci level standing sturdy, the altcoin saw an expected bearish pennant-like breakdown on its chart. Consequently, the alt fell back below the 20 EMA.

Over the last few weeks, XRP chalked out a rising wedge (reversal) pattern while breaching the four-month trendline resistance (now support).

For over a month, the price action has marked a strong rejection at the 61.8% Fibonacci resistance. Should the current candlestick close below the $0.36-level, XRP would witness a near-term slowdown.

A close below the 20 EMA could help the sellers pull XRP to retest the $0.31-zone in the coming sessions. The alt could continue its sluggish phase near the Point of Control (POC, red). 

Contrarily, an immediate recovery would help the buyers test the supply zone in the $0.38 region. The buyers must wait for a close above the golden Fibonacci level before placing calls.

Rationale

Source: TradingView, XRP/USDT

The Relative Strength Index displayed a bullish bias as it continued its northbound trajectory above the midline. A sustained position above the midline would help the buyers hold on to the immediate grounds.

Furthermore, the Volume Oscillator (VO) saw lower peaks over the last three days and bearishly diverged with the price. But the ADX displayed a considerably weak directional trend for XRP.

Conclusion

XRP’s reversal from the 61.8% resistance on the daily timeframe could create a rebounding opportunity for the bears. Also, the bearish divergence on the VO would further heighten these chances. The targets would remain the same as above.

However, keeping an eye on Bitcoin’s movement and the broader sentiment would be important to determine the chances of a bearish invalidation.

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With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.
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