January 17, 2021

Cryptheory

24/7 crypto news, cryptocurrency meaning, guides, learning, #cryptohelpschildren

XRP Bounces But Has Not Yet Confirmed A Reversal

2 min read

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.

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

Long-Term Levels

Since reaching a high of $0.78 on Nov. 241, XRP has decreased by a massive 61%. However, it has been increasing since reaching a low of $0.172 on Dec. 29.

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.

Weekly
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.

Movement
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.

Daily
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.

XRP Short-Term
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.

The post XRP Bounces But Has Not Yet Confirmed A Reversal appeared first on BeInCrypto.

Source

Leave a Reply

Your email address will not be published.