XRP: Analyzing the firmness of this defending zone
Correlating with the broader trend, XRP has been on a steep slump after losing the $0.7-zone. XRP steadily declined while chalking out a three-month trendline resistance (yellow, dashed).
Meanwhile, the buyers strived to find a convincing close above the basis line (green) of the Bollinger Bands (BB). But the bearish efforts have subdued the buying comeback chances.
A close above or below the immediate trendline resistance would be critical to determine the upcoming moves. At press time, XRP traded at $0.3219, up by 3.28% in the last 24 hours.
Source: TradingView, XRP/USDT
The long-term bearish rally formed a three-month resistance that has constricted the buying efforts in the daily timeframe.
After poking its 16-month low at the $0.33-level on 18 June, XRP saw a bounce back from the $0.3-support. But with the 61.8% Fibonacci level standing sturdy, the altcoin saw an expected bearish pennant-like breakdown on its chart. Thus, falling back below the 20 EMA and the basis line of BB.
The price action was now a tricky sport. A fall from the 23.6 % level could help the sellers pull XRP to retest the $0.29-zone near the Point of Control (POC, red). The alt could continue its sluggish phase near this area.
An immediate recovery would help the buyers test the 38.2% level in the $0.34-region. The buyers must wait for a robust close above the trendline resistance before placing calls.
Source: TradingView, XRP/USDT
The Relative Strength Index (RSI) continued to display a bearish bias after dropping below the midline. A sustained position above the 36-mark support would help the buyers hold the immediate support level on the chart.
Although the CMF dipped above the zero-mark, its higher troughs have resulted in a bearish divergence with
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