April 25, 2024

XRP Shows Comparative Strength: Is It Time to Buy?

XRP’s weekly technical chart over the last three months has been showing two huge swings low as it got back from its support level at $0.315. Further to that, the W-shaped form of the chart is showing a shape similar to that of a double-bottom pattern. 

A Slight Pullback in XRP Price

The bullish pull-back pattern is almost the standard point when the market is about to hit its bottom and it boosts a high rebound after it gets properly executed. The question now is if XRP’s price will get to that $0.4b line.

There have been two bullish pullbacks from the significant support line of $0.135 and it only shows that traders are buying the token at that level, and also at an active rate. Due to that, XRP saw a price rally of 33% through the fortnight of that period and made it to a high level of $0.421.

On the 20th of September, the bull run created a huge breakout, going away from the $0.39 resistance created at the neckline. Therefore, it was able to surpass the level of resistance after the support pullback gave an additional verification for a rally sometime in the future.  

Buyers Need to Sustain Buying

But in the early hours of Wednesday, however, the price chart of the XRP token displayed up to a 5% loss on the day and the token retested the price at $0.39 as a possible line of support. But, due to the pressure, buyers were able to regain some of their initial losses and showed a relatively low rejection of the price candle.

The low rejection candle is showing a level of sustainability over the support line of $0.39, and it gives an easy entry opportunity to buyers who might be interested. If there is a sustained round of buying on XRP, the price might rally by 20% upward to reach the $0.48 level.

On another hand, if the buyers, for some reason are not able to sustain the buying above the $0.39 level, a close under it will then prolong the sideway rally over $0.315. XRP reclaimed the 100 daily exponential moving average slopes along with the breakout on the neckline. Importantly, the asset’s chart shows the buying signal and the crossover from bullish traders falling between the 20 daily exponential moving averages and 50 daily exponential moving averages.

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