last week XRP/USD The price has tumbled by around 25%, as XRP price faced strong resistance in the $1.4-1.35 region, preventing its price from starting a significant rally. However, XRP remains above the 200-day EMA, which is the last line of EMA support.
Important Technical Data
- XRP continues to form an ascending channel on the daily timeline chart.
- XRP intraday trading volume stands at $4.2 billion, a loss of 11.26%.
XRP/USD The technical chart has shown an impressive recovery after its sudden fall in September. This new rally even managed to hit the previous high volatility resistance of $1.4-1.35, which in turn provided strong resistance to the price and led to another pullback phase on this chart.
However, alongside all this choppy movement of the XRP chart, the XRP daily timeframe chart showed an ascending channel pattern.
According to the Bollinger band, XRP price continues to fluctuate at the lower band sign, which should provide a decent level of support. The Relative Strength Index (42) thinks this rally may be a bit weak as it sees a significant depreciation in value during a pullback phase.
XRP/USD 4-Hour Chart
The narrower timeline XRP chart, on the other hand, appears to have received strong support from the ‘support line’ for the channel pattern. In the likely scenario, the XRP price could rise by around 35% after bouncing off the support line.
However, traders should also remember that the ascending channel pattern is also a ‘perfect’ door for selling opportunities when it falls off the support line. Therefore, long traders should seek confirmation when the price breaks above the 200 EMA line on the 4-hour time chart.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.