Despite the aggressive crackdown on the crypto market by the US SEC, the XRP price shows a promising bullish outlook by sustaining its higher levels. Amid the intense sell-off on June 5th and 10th, the falling altcoin shows a sharp reversal at the same level of $0.486, indicating buyers are not allowing the price to fall below this level. Thus, the $0.486 level stands as a crucial level to sustain recovery sentiment among market participants.
Within a fortnight, the XRP price rebounded twice from the $0.486 support level. These two reversals show the formation of a double bottom pattern in the daily time frame chart. This chart formation is a sign of strong accumulation from buyers at particular support. The last reversal from the $0.486 mark has surged the prices by 15.6% where it currently trades at the $0.558 mark. This rally shows a breakout attempt from the $0.55 neckline resistance, offering an entry opportunity to traders.
However, the $0.55 is a multi-month barrier that undermined several attempts from buyers to start a sustained bullish run. A potential breakout above this forbidden barrier with daily candle closing is needed to intensify the buying momentum that may push the price above $0.6. On the other hand, if buyers fail to breach the $0.55 resistance, the XRP price could prolong its current consolidation phase for a few more days.
The intraday trading volume in the XRP is $1.5 Billion, indicating a 33% gain. This is a testament to the interest and enthusiasm among market participants for this crypto asset. The exponential moving average (EMA), specifically the 20-and-50-day EMA, has proven to be excellent support during the minor pullback in the current recovery phase. This suggests that the overall market sentiment and trend remain bullish.
The vortex indicator, which measures trend strength and direction, also supports this observation. The VI+ and VI- slope prevented a bearish crossover despite the increased bearishness in the market, indicating the overall sentiment among trades remains bullish.
In conclusion, the XRP price has impressively withstood the recent sell-offs in the crypto market and held its ground at crucial support. The bullish pattern formation could bolster buyers to breach the $0.55 resistance, setting a potential rally to the $0.6 psychological barrier. As with any investment, it’s essential to conduct thorough market research before making any decisions, as the author or publication does not hold responsibility for personal financial losses.
Source: Coingape
