XRP recently experienced a notable pullback, finding firm support around the $2.03–$2.05 region. This zone has acted as a solid demand area on multiple occasions, creating a foundation for potential bullish momentum. The price is currently rebounding, suggesting buyers are stepping in to defend this level once again.
Chart Patterns
Three patterns emerge from the 1-hour chart:
- Double Bottom Formation: Around $2.04, a double bottom pattern is taking shape, typically a bullish reversal sign when confirmed with a break above the neckline near $2.11.
- Falling Wedge Breakout: XRP recently broke out of a falling wedge, indicating a potential trend reversal from the prior downtrend.
- Bollinger Band Squeeze: Price volatility is tightening, often preceding a significant breakout. The recent expansion hints at an impending directional move.
Indicator Analysis
Bollinger Bands (BB): After squeezing tightly, the bands have started to widen. Price bounced from the lower band and is approaching the midline near $2.11, suggesting a possible test of upper resistance around $2.16.
MACD (12, 26, Close): The MACD histogram shows decreasing bearish momentum, and the signal line appears to be bottoming out. A bullish crossover could confirm upward momentum.
EMA (20-period): The price is attempting to regain footing above the 20 EMA. A sustained move above this level will support bullish continuation.
RSI (Relative Strength Index): Although not displayed on the chart, RSI is likely recovering from oversold territory, supporting a short-term bounce.
Key Levels
- Support: $2.03 and $2.05 remain critical zones. A break below could lead to a retest of $2.00 or lower.
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- Resistance: $2.11 (EMA and mid-Bollinger band), followed by $2.16. A close above these could trigger a rally toward $2.20–$2.25.
Price Outlook
With buyers defending the $2.03 level and technical indicators aligning for a potential reversal, XRP may target $2.16 next. A break and close above this resistance could spark a short-term bullish rally toward $2.25. However, failure to break $2.11 could stall momentum and keep XRP range-bound.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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