How XRP investors can leverage this ‘high reward low risk’ strategy
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
While the market-wide bloodbath seemingly came to a short-term rest, XRP bulls finally had some breathing room to propel a near-term recovery on the charts. XRP’s rebound from the $0.307-mark chalked out a three-week trendline support level (white, dashed) over the daily timeframe.
Meanwhile, buyers strived to breach the immediate supply zone (green, rectangle) around the $0.37-$0.39 range. Only a close above this level could aid the buyers in continuing their spree.
At press time, XRP was trading at $0.3773, down by 3.25% in the last 24 hours.
Source: TradingView, XRP/USDT
After touching its multi-yearly low at the $0.33-level on 18 June, XRP consolidated around the $0.307-$0.39 range for over six weeks. With the supply zone keeping a check on the buying power, the altcoin marked a gradual recovery above its 20 EMA (red) and the 50 EMA (cyan).
The previous double-bottom structure reinforced the buying pressure that ultimately helped the alt retest the supply zone for the third time in over a month.
A bounce-back from the $0.38 support can position XRP to a potential upside in the coming days. Should this rebound occur on the back of greater trading volumes, the alt might aim to sway near the $0.42-zone. Any drop below the immediate support could trigger a comeback possibility from the trendline support.
Source: TradingView, XRP/USDT
The Relative Strength Index’s (RSI) jump above the midline heightened the chances of a gradual revival on the charts.
On the other hand, the Chaikin Money Flow (CMF) marked lower peaks to picture a rather bearish divergence. Traders/investors should look for a
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