XRP bounces but its trend reversal remains to be confirmed

XRP trades between long term support and resistance located at $ 0.23 and $ 0.32.

The price is also following a short term upward support line.

The trend is not upwards until the price has returned to the $ 0.47 zone.

The price of Bitcoin Supersplit has been rising since December 29. That said, that rally may just be a retracement in response to the rapid decline that took place between December 19 and 23.

XRP’s trend cannot be considered upward until it has returned to the $ 0.45 area.

Long term level

Since peaking at $ 0.78 on November 21, 2020, the price of XRP has suffered a massive decline of 61%. It has, however, been up from its low of $ 0.172 on December 29.

This drop took XRP down to support at $ 0.23, before it started to rebound. XRP is currently trading in a range of $ 0.23 to $ 0.30.

Although technical indicators are bearish, price has not retraced significantly since its fall.

The 0.382 fibonacci retracement level (which is often the minimum retracement amount of a move) is found at $ 0.40. The fibonacci retracement level is for its part at $ 0.47.

A rally to the 0.5 level would go a long way in indicating a possible uptrend in XRP.

Cryptocurrency trader @Crediblecrypto shared a chart of XRP, indicating that it will likely follow a rally towards the $ 0.46 area

Its passage of this zone or the rejection of the latter will be a major element in determining the direction of the trend. This is consistent with our analysis and the areas of resistance that we have highlighted.

An observation of the daily chart reinforces the importance of the resistance located at $ 0.47. This is because this is both the 0.618 fibonacci retracement level of the second portion of the downward movement, as well as an old support area.

The current upward move was preceded by considerable bullish divergences in the daily RSI. The MACD, RSI and Stochastic Oscillator are all higher, supporting a possible bullish continuity.

A bullish cross in the Stochastic Oscillator and the RSI moving above 50 would likely signal a trend reversal.

This entry was posted on 14. January 2021, in Bitcoin. Bookmark the permalink.