By Franklin Smith
Correlation with the overall market bias saw XRP on continued plummets after surrendering the crucial $0.7. The remittance token witnessed steady plunges while chalking a 3-month trend-line resistance. Meanwhile, Ripple buyers thrived for a decisive closing beyond the Bollinger Bands’ basis line.
However, intensified bearishness halted buying resurgence chances. A closing beneath or under the nearest trend-line resistance remains crucial in determining upcoming price actions. While publishing this content, XRP changed hands near $0.3219, gaining 3.28% within the previous 24 hours.
Ripple Daily Timeframe
The extended XRP bearish rally printed a 3-month resistance. This obstacle has constricted buying activities in the token’s daily chart. Meanwhile, Ripple witnessed a rebound from the support at $0.3 following plunges beneath the $0.33 16-month low on June 18.
The remittance token experiences an expected pessimistic bearish pennant breakdown on the chart as the 61.8% FIB mark remained sturdy. That translated to declines beneath the 20 exponential moving average and the BB’s basis line.
For now, XRP price action hovers in a tricky spot. A plunge from 23.6% might bolster sellers in dragging the alt to retest $0.29 near the POC (Point of Control). The alternative token might see continued sluggishness within this territory.
Immediate recoveries would support buyers in testing the 38.2% mark at $0.34. Meanwhile, buyers should wait for a decisive closing beyond the trend-line resistance before executing calls.
Reasoning
The RSI (Relative Strength Index) maintained bearish trends following slumps beneath the midline. The indicator sustaining beyond the 36 support would back buyers in keeping the nearest support floor on the chart. Though the Chaikin Money Flow hiked beyond the zero-line, its higher troughs catalyzed a bearish divergence with XRP price within the past couple of days.
Final Thought
Ripple’s reversals from the trend-line resistance might trigger a bounce-back opportunity for sellers. Moreover, CMF’s bearish divergence amplifies such instances. The targets remain as mentioned above.
Nevertheless, enthusiasts should assess BTC and broad market sentiments to ensure informed moves. That can help them predict bearish invalidation. The crypto market enjoys green as top assets present lucrative overnight gains. Will the market sustain this upside? Stay around for upcoming market developments.