Amid the ongoing correction in the crypto market, the falling XRP price has found support at the $0.42 level. This support level, in conjunction with other technical levels such as the support trendline of a falling channel pattern and the 61.8% Fibonacci retracement level, creates a strong accumulation zone. Additionally, the daily chart shows long tail rejection candles at this support, indicating a higher possibility of a price rally. Is this the right time to enter the market?
A bullish reversal from the channel pattern’s support trendline might trigger a temporary rally of 8%. A breakout above the overhead resistance trendline of the pattern would signal an upcoming recovery. The intraday trading volume in XRP stands at $730.5 million, witnessing a 2.22% loss.
The current correction phase in the XRP price is steered by a falling channel pattern. As mentioned earlier, the prices have plunged to the bottom trendline of this pattern, trying to find suitable support. The lower price rejection near the support trendline indicates that traders are accumulating at this level, increasing the likelihood of a bullish reversal. Furthermore, a retest to the support trendline typically encourages a recovery back to the overhead trendline.
Consequently, the XRP price has the potential to rise by 8% and hit the above trendline.
However, at press time, the coin price trades at $0.42 and faces immediate resistance at $0.43 and the 200-day EMA. A potential breakout from this resistance, coupled with a daily candle closing above, would provide buyers with a significant launchpad to reach the aforementioned target.
Examining the technical indicators, the 20-day Exponential Moving Average (EMA) slope acts as dynamic resistance, trying to undermine buyers’ attempts to push higher. The daily Relative Strength Index (RSI) slope, which is near the oversold region, indicates that the XRP price is currently at a discounted value for accumulation.
In summary, XRP’s intraday price levels are as follows:
– Spot price: $0.42
– Trend: Down
– Volatility: High
– Resistance levels: $0.43 and $0.485
– Support levels: $0.42 and $0.38
As always, market conditions are subject to change, and it’s essential to conduct thorough research before investing in cryptocurrencies. The author and the publication hold no responsibility for any personal financial loss.
Source: Coingape
