For the first time in a long while, Ripple (XRP) has rebounded as price broke the EMAs and the downtrend line. The implication is that the crypto has resumed an upward move. The previous trend may have been terminated. Buyers have a choice to sustain the uptrend above the downtrend line.
Technically, as price breaks and closes above the downtrend line, the upward move has come to stay. Unfortunately, as the coin rebounded, the price reached the overbought region of the market. Sellers have emerged to push prices down. It is unclear the extent of the downward move.
Presently, the market is retracing to the next support at $0.185 low. XRP will resume the uptrend if the new support holds.
Nevertheless, if the bulls fail to sustain the uptrend above the downtrend line, the bears may break below the downtrend line. This will compel XRP to the previous range-bound zone of $0.17 and $0.18. The current uptrend will be under threat. Meanwhile, XRP is fluctuating above the next support at $0.185 at the time of writing.
Ripple Breaks the Resistance Line of the Descending Channel, Uptrend Likely
On the daily chart, Ripple’s downward move has been unrelenting since April 29. The price has fallen from the recent high of $0.235 to a low of $0.17 before the recent rebound. The recent bounce has broken the resistance line of the descending channel. The implication is that the selling pressure has been exhausted. There is a likelihood of a change in the trend. Meanwhile, the coin is retracing after facing rejection at the $0.19 resistance.
Key Levels to Watch
Key Resistance Zones: $0.35, $0.40, $0.45
Key Support Zones: $0.25, $0.20, $0.15
-The Stochastic Indicator:
The price has broken above the 12-day EMA and the 26-day EMA. This suggests that Ripple is rising. Secondly, the price has also broken the downtrend line and closed above it. The current trend will increase as long as bulls sustain the upward move. Ripple is above 80% range of the daily stochastic, but the bands are sloping downward. It indicates that the coin is in the overbought region of the market. Sellers have already emerged to push prices down.
– The Relative Strength Index (RSI) Indicator:–
Ripple is now at level 50.50 of the Relative Strength Index period 14. Ripple has just made an upward move as bulls are still in control. The EMAs have been sloping downward, indicating the previous trend.
Author: Mustapha Azeez