XRP: Analyzing the firmness of this defending zone
Correlating with the broader trend, XRP has been on a steep slump after losing the $0.7-zone. XRP steadily declined while chalking out a three-month trendline resistance (yellow, dashed).
Meanwhile, the buyers strived to find a convincing close above the basis line (green) of the Bollinger Bands (BB). But the bearish efforts have subdued the buying comeback chances.
A close above or below the immediate trendline resistance would be critical to determine the upcoming moves. At press time, XRP traded at $0.3219, up by 3.28% in the last 24 hours.
XRP Daily Chart
The long-term bearish rally formed a three-month resistance that has constricted the buying efforts in the daily timeframe.
After poking its 16-month low at the $0.33-level on 18 June, XRP saw a bounce back 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. Thus, falling back below the 20 EMA and the basis line of BB.
The price action was now a tricky sport. A fall from the 23.6 % level could help the sellers pull XRP to retest the $0.29-zone near the Point of Control (POC, red). The alt could continue its sluggish phase near this area.
An immediate recovery would help the buyers test the 38.2% level in the $0.34-region. The buyers must wait for a robust close above the trendline resistance before placing calls.
The Relative Strength Index (RSI) continued to display a bearish bias after dropping below the midline. A sustained position above the 36-mark support would help the buyers hold the immediate support level on the chart.
Although the CMF dipped above the zero-mark, its higher troughs have resulted in a bearish divergence with price over the last few days.
XRP’s reversal from the trendline resistance could provoke a rebounding opportunity for the sellers. The bearish divergence on the CMF 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.