Analyzing probability of XRP breaking out of current congestion zones
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
XRP witnessed a repeat show after the $0.86-resistance rejected its rally for the second time in three months. As a result, the buyers found it challenging to keep the price afloat above the Point of Control (POC, red).
Keeping a cynical outlook, a sustained close below the immediate support could propel the alt to test the $0.69-mark before conforming to any trend. At press time, XRP was trading at $0.7044, down by 0.85% in the last 23 hours.
Source: TradingView, XRP/USDT
Since mid-November, the sixth largest crypto in terms of the market cap has shed nearly 47.48% of its value after slipping below some key price points.
Consequently, it hit its 11-month support at the $0.6-level on 22 January. Since then, it saw a 68.4% growth until it approached the $0.86 ceiling on 28 March. Over the last three months, the immediate trendline support (white, dashed) has offered strong support for the buyers to swoop in and stall the sell-offs.
With the EMA ribbons taking a bearish flip on the Daily timeframe, XRP’s most recent bull rally ceased at 55 EMA, near its trendline resistance (green, dashed).
Assuming the buyers re-enter at the current support level, any recovery will likely halt near its EMA ribbons at the $0.75-mark. Should the fear sentiment in the market worsen, a fall toward the lower band of the Bollinger Bands (BB) before a buying push towards the $0.75-level seemed plausible.
Source: TradingView, XRP/USDT
The RSI depicted weak observations after swooping from the mid-line and flattening at the 38-mark. A failure on the part of the buyers to defend the 37-mark could pave a path for an extended
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