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Technical analysis of Ripple’s XRP – Correction upcoming?

  • The cryptocurrency market continues its bullish rally. Ripple’s XRP is impacted also impacted by that but shows symptoms of buyer exhaustion.
  • A correction in the coming days is likely before XRP continues its uptrend. In the medium and long term, the scenarios continue to be favorable for the bulls.

XRP/USD 4 HOURS

Source: Tradingview

Ripple´s (XRP) price is currently bouncing, having reached the Fibonacci 61.8% retracement and the 200-period EMA, located at $0.22. The price even, at a certain time, managed to break that range to $0.213, but the rebound occurred immediately, as we can see on the wick and close of the candle.

The price quotation is currently located above the Control Point in the volume profile, so it may retest the resistance at $0.254. If the price fails in its attempt to break the resistance mentioned above, a double top could form what would cause a surge of sales in the face of the weakness of the bulls.

The RSI is above 60 what shows a great buying momentum right now, but the transition moves to sales area, so bear pressure is still present. For its part, the Exponential Moving Averages show a bullish scenario in this timeframe, when those of shorter time periods are above.

XRP/USD 1 DAY

Source: Tradingview

In the daily graph, the a priori scenario is also favorable, although there is still no clear bullish signal evident. The XRP is close to reaching the 200-period EMA at $0.254. The last time the price touched the Exponential Moving Average on this chart, the price suffered a significant drop, as we can see.

The RSI and MACD are in the bullish-buyer zone, so it does look like it will seek the resistance mentioned above. If the price breaks $0.254, it could gain momentum up to $0.30, where we consider there to be significant psychological resistance. If the price fails to test the resistance, the price could fall to $0.22. If it exceeds that level, the losses could extend to $0.20.

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About Author

Javier Búfalo

Javier is a professional who is engaged in business labor advice and trading in financial markets. He met Bitcoin in 2015 and got excited, since then he has been involved to the world of cryptocurrencies and blockchain technology, sharing technical market analysis and covering news of interest. He thinks blockchain will be the next technological revolution.

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