Ripple (XRP) has struggled to overcome its trend-line resistance as the 23.6% FIB mark remained strong within the previous month. Meanwhile, an extended squeeze phase has the remittance tokens in a battle to secure a decisive break.
A closing beneath the nearest demand territory would offer a shorting opportunity. Meanwhile, buyers recouping their momentum near the resistance at $0.42 can see XRP rebounding towards 23.6%. While writing this content, Ripple traded near $0.3996.
Ripple Daily Timeframe
The alternative token compressed for almost one month now as the past downside rally secured grounds near the baseline at $0.38. Bulls could not ensure trend-shifting optimistic bullish candles within the past two months.
Ripple price has hovered around the POC (Point of Control) since hitting the $0.33 15-month lows on May 12. Nevertheless, bulls have historically provoked revivals when the EMA20 overstretched from the EMA50. XRP’s gradual surge helped the remittance token overcome a 2-month trend-line resistance and converted it into a support barrier. Meanwhile, the 20 Exponential Moving Average restrained most buying trials since April’s early sessions.
A closing beneath the Point of Control would offer sellers enough momentum for a $0.38 retest. On the other hand, a hike past the nearest trend-line resistance might see the altcoin climbing towards the 23.6% FIB resistance zone.
Reasoning
The Relative Strength Index remained compressed inside 36 – 41. Bulls should overcome the 41-hurdle to ensure a lucrative atmosphere for bullish reactions. Also, the on-balance volume’s latest peaks saw Ripple registering a bearish divergence with XRP prices. That made it challenging for buyers to secure a steady break past the 20 exponential moving average. Nonetheless, the Awesome Oscillator has improved as it nears the zero line.
Final Thought
Ripple’s downside journey towards the $0.38 17-month foothold presented two opportunities for investors. A decline under the demand territory would offer shorting opportunities with profit-booking at $0.3. A potential rebound could push the remittance token towards the 23.6% mark. Lastly, traders should watch the broad market and BTC actions to ensure money-making moves.
Stay tuned for upcoming developments in the cryptocurrency world.