XRP price had far too much resistance to the north to contemplate buying tokens as a longer-term buy
XRP price has held at the $0.76 support, although it has seen a drop at $0.705. But, the question is, how much more can buyers absorb? The trend of XRP is bearish on higher timeframes. At the time of writing, the Ripple’s native token is changing hands at $0.3023.
XRP/USD 4-hour chart | Source: TradingView
XRP price has to find strong demand at this key level to keep bears at bay
A move past $0.9 was needed to break the structure, but sellers were strong towards $1.05. It seems likely that XRP will need to break through several strong resistance levels before investors can expect a rally.
XRP/USDT chart | Source: TradingView
On the daily chart, a descending channel (yellow) was seen. In particular, the lower half of the channel has been respected well by the price. The channel lows coincided with support at $0.76 and demand at $0.706 (dotted green line).
In August, the substantial gains came after the $0.76 area was flipped from supply to demand. At the time of writing, this area had not been flipped back to demand. But, it could only be a matter of time. Repeated tests of a support level drain the buyers of capital and increase the likelihood that buyers would get exhausted, and sellers can smash the price straight through the floor.
On the upside, heavy resistance is at $0.88 (the Fibonacci retracement and higher time frame resistance) and the $0.92-0.94 zone (a node of several strengths on the volume profile displayed range, associated with the midpoint of the channel). The $1 area (red box) is also where XRP has been rejected over the past few months.
To break these resistances, the OBV has to steadily climb. It was encouraging that the OBV had not yet fallen below its August lows (before the most recent run past $1.3, but the lower highs formed on the OBV were ominous).
Awesome, Oscillator has registered green bars to show that the downside momentum is waning but is still below the zero line. XRP has too much resistance to the north to consider buying XRP as a long-term buy. However, an opportunity to short XRP between $0.88-$1 could emerge if there are signs of a downside in Bitcoin.
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