XRP Technical Analysis: Could $2.91 Be the Launchpad for a Rally to $3.50? – Markets and Prices Bitcoin News
XRP has experienced a notable decline of 5% in the past day, trading at $2.42 as of this analysis. Despite the drop, technical indicators across multiple timeframes point to the potential for bullish momentum, with key levels and patterns offering insights for traders and investors.
XRP
On the daily chart, XRP showcases a strong bullish trend that recently peaked at $2.91, followed by a pullback to the $2.4 level. This pullback serves as a critical support zone, reinforced by psychological and technical factors. Volume analysis reveals a decline in trading activity during the pullback, suggesting diminished selling pressure, which often precedes a continuation of the primary trend. Resistance remains firmly established at the $2.91 high, and a breakout above this level could pave the way for a significant upward move.
The 4-hour chart reflects short-term bearish sentiment, evidenced by a sequence of lower highs since the $2.91 peak. However, stabilization above the $2.4 support level hints at the possibility of reversal or consolidation. Reduced volume during this period further indicates weakening bearish momentum. A close above $2.65 on this timeframe would signal a resumption of bullish momentum, with potential targets at $2.8 and beyond.
The 1-hour chart provides additional clarity for intraday traders. XRP’s price has recently attempted to reverse from a local low of $2.35, forming a higher low at $2.4. Immediate resistance lies at $2.45 and $2.5, with a confirmed breach of these levels signaling a short-term upward trend. Notable accumulation at the $2.4 level, evidenced by modest volume increases during green candles, supports the case for a near-term recovery.
Oscillators present a mostly neutral outlook, aligning with the observed consolidation. The relative strength index (RSI) at 69.03 indicates a market nearing overbought territory but not yet primed for a reversal. Similarly, the stochastic %K and commodity channel index (CCI) also maintain neutral readings. The average directional index (ADX) reflects strong trend strength without directional bias, while the awesome oscillator suggests stability. The momentum indicator diverges slightly, signaling a sell, while the moving average convergence divergence (MACD) provides a buy signal, reinforcing the bullish framework.
Moving averages (MAs) strongly support the overall bullish sentiment, with both exponential moving averages (EMA) and simple moving averages (SMA) across all observed periods indicating buy signals. Notably, the 10-period EMA at $2.32 and the 200-period SMA at $0.69 highlight robust support and the potential for significant upside. Together, these metrics underscore the importance of the $2.4 support level and the opportunity for further gains if XRP breaks above immediate resistance at $2.65 and eventually challenges the $2.91 high.
Bull Verdict:
XRP’s ability to maintain the critical $2.4 support level, combined with strong buy signals from moving averages and a potential breakout above $2.65 or $2.91, suggests that the bulls are in control. If volume surges accompany a breakout, XRP could target $3.5 or higher, reaffirming its bullish trajectory in both the short and long term.
Bear Verdict:
Despite the resilience at $2.4, the failure to break above $2.65 or $2.91 resistance could embolden bears. If selling pressure intensifies and XRP slips below $2.35, a deeper retracement toward lower support levels could unfold, potentially halting the bullish narrative in its tracks.
