Breaking down from a three-month range bound last week, Ripple’s XRP saw a sharp rejection and retraced back in the range. The price looks strong following a 3% gain but is currently facing resistance.
Following a lower low and lower high movement in a month, XRP fell sharply below a key range bound to a multi-month low of $0.383 during the last leg down. The low level produced support and the price recovered inside the range that same week.
It advanced recovery this week and increased consistently to a daily high of $0.478 – May’s low. Rejecting this daily high over the past hours, it dropped and now floats at $0.46. Despite that, the price is still looking strong on the daily.
A daily price close below the current weekly low could bring another sell-off capable of crashing the price extremely to the previous bottom before picking up. The current retracement phase might come to an end soon as it is still considered bearish from a long-term perspective.
For a shift in the market structure, XRP must reclaim the previous high with a new pattern like higher highs and higher lows before we can start to consider a bullish move on the daily timeframe and as we can see on the price chart, there’s no signs of such pattern.
XRP’s Key Level To Watch
Source: Tradingview
A recovery above the monthly high should validate a break-up to a key $0.50 level before testing the $0.53 resistance level, located in the range bound. The next resistance level is $0.57, followed by a surge to $0.6.
The $0.45 level is acting as daily support. A drop below it could bring us back to the key $0.419 support and potentially $0.383 in no time.
Key Resistance Levels: $0.478, $0.53, $0.57.
Key Support Levels: $0.45, $0.419, $0.383.
- Spot Price: $0.46
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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