XRP Bounces But Hasn’t Yet Confirmed a Reversal

Share Article
In Brief
  • XRP is trading between long-term support and resistance at $0.23 and $0.32, respectively.

  • It is also following a short-term ascending support line.

  • The trend isn't bullish until $0.47 is reclaimed.

  • promo

    Gravity Dex Protocol: Bringing DeFi to Cosmos

The Trust Project is an international consortium of news organizations building standards of transparency.

The XRP price has been increasing since Dec. 29. Nevertheless, the increase may only be a retracement in response to the rapid decline between 19-23 Dec.

Sponsored



Sponsored

We cannot consider the XRP trend bullish unless it reclaims $0.45.

Long-Term Levels

Since reaching a high of $0.78 on Nov. 24, XRP has decreased by a massive 61%. However, it has been increasing since reaching a low of $0.172 on Dec. 29.

Sponsored



Sponsored

The fall took XRP to the $0.23 support area before initiating a bounce. XRP is currently trading in a range between $0.23-$0.30.

Even though weekly technical indicators are bearish, it has not retraced significantly since the drop.

The 0.382 Fib retracement level, which is often the minimum amount a move retraces, is at $0.40 while the 0.5 Fib retracement level is at $0.47

A reclaim of the latter would go a long way in suggesting that the XRP trend is now bullish.

Chart By TradingView

Cryptocurrency trader @Crediblecrypto outlined an XRP chart, stating that it’s likely to rally towards the $0.46 area.

Whether it reclaims it or gets rejected will be a major determinant in the direction of the trend. This fits with our analysis and resistance areas.

Source: Twitter

XRP’s Future Movement

A look at the daily chart further reiterates the importance of the $0.47 resistance area since it’s both the 0.618 Fib retracement level of the second portion of the downward move and was previously a support area.

The current upward move was preceded by significant bullish divergence in the daily RSI. All three of the: MACD, RSI, and Stochastic Oscillator are increasing, supporting a possible upward continuation.

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

Chart By TradingView

The shorter-term two-hour chart shows that XRP has followed an ascending support line since the previous Dec.29 bottom.

As long as XRP is trading above this line, the short-term trend is bullish. Technical indicators are also bullish, supporting a continuation of the upward movement.

If XRP manages to reclaim the minor $0.30 resistance area, the rate of increase should accelerate.

Chart By TradingView

Conclusion

To conclude, while XRP is likely to continue retracing upwards, the long-term trend isn’t bullish until the $0.47 area is reclaimed.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

Follow Author

Market signals, studies and analysis! Join our Telegram Today!

Go

Market signals, studies and analysis! Join our Telegram Today!

Go

Market signals, studies and analysis! Join our Telegram Today!

Go