By Franklin Smith
Ripple’s (XRP) latest growth found a hurdle at the $0.39 area following a surged selling momentum that overturned the demand territory into a supply area.
As a result, the token’s gradual selling strength increases triggered a pessimistic flip on the Exponential Moving Average (EMA) ribbons. The decline phase exhibited an ascending channel break on the daily chart.
Meantime, XRP buyers could secure desirable bounce-back levels to halt the breakout’s bloodbath. A closing beyond $0.33 would support buyers to recoup their strength in the near term. While writing these lines, the remittance token traded at $0.335.
Ripple Daily Timeframe
Sellers dominated the trends following seven-week ascending channel reversals, provoking a massive retracement on the price charts. The $0.39 mark remained a substantial resistance for eleven weeks. As the supply area restricted the buying strength, the alt noted a reversal beneath its Exponential Moving Average ribbons.
Meanwhile, the bearish pennant pattern at this publication appeared to catalyze a breakout that retested the baseline at $0.33.
Bears might take advantage of the weakness around this territory, especially with the magnifying gap between the southbound 20EMA and 50EMA. A possible rebound from the support at $0.33 might position the token to explore the $0.35 mark.
Nevertheless, an ultimate close beneath this foothold would amplify the bearish strength in the upcoming sessions. Furthermore, the latest sell volumes surpassed buy orders. Bulls should rejoin at around $0.33 to avoid immediate fallouts to $0.32.
Reasoning
The RSI (Relative Strength Index) kept its spot well under the midline over the past ten days. An ultimate closing beyond the resistance at 38 might confirm ease in the magnified selling momentum.
Moreover, the CMF (Chaikin Money Flow) formed higher troughs, depicting a minor bullish divergence with the XRP price. A hike past the zero mark might catalyze a buying volume surge. Also, the DMI lines retained their bullish stance, though the ADX highlighted a feeble directional bias.
Final Thought
Considering EMAs’ bearish flip plus weak buying momentum, XRP bears might extend their spree within the upcoming sessions. Nevertheless, the CMF’s divergence might catalyze short-term growth before surrendering to long-term pessimistic tendencies. Either way, targets would stay as revealed.