XRP price is showing bullish signs above a crucial horizontal support area
Yesterday, the XRP price recorded a 5% drop in the past day, showing signs of no longer recovering above this level during the day. Even a drop to the $0.70 support is possible. At the time of writing, Ripple’s native token is changing hands at $0.733.
XRP/USD 4-hour chart | Source: TradingView
XRP price is trading above support at $0.72, following a short-term descending resistance line
If the price can break above the most liquid area around $0.77 and fixate above it by the end of the day, there is a chance to witness near-term growth. XRP shows bullish signs above a key horizontal support area and could soon initiate an upward movement towards the nearest resistance.
XRP has been going down since hitting a high of $1.96 on April 14. It is down 62% so far. However, it is possible that the token reversed its bearish trend after hitting a low of $0.5 on June 22. The subsequent recovery resulted in an upward movement that continued for 76 days and was 176% in magnitude.
While XRP has been falling since, it bounced at the $0.72 horizontal area twice, creating long lower wicks each time. Therefore, as long as the token is trading above this level, the possibility that the structure is still bullish remains intact.
A look at technical indicators on the daily timeframe provides a bullish outlook. This is especially visible by the significant bullish divergence formed in both the RSI and the MACD. This is a bullish sign that often precedes significant upward movements.
Currently, XRP is following a descending resistance line. If a divergence occurs and the token breaks out of this line, the nearest resistances will be $1 and $1.30, respectively. These are both horizontal resistance levels.
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