XRP: Which way to go? Delineating the effects of previous bull run
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
XRP’s southbound journey finally retired as the buyers upheld the $0.3 baseline support while orchestrating a bull run over the last few days.
The recent update on the SEC-ripple lawsuit has induced a positive sentiment amongst the buyers while XRP jumped above its EMA ribbons on the daily chart.
Nonetheless, the sellers could now seek to re-enter the market to break the streak of green candles in the coming sessions. At press time, XRP was trading at $0.4638, up by over 0.0% over the last 24 hours.
Source: TradingView, XRP/USDT
While undertaking a sideways track, XRP consolidated in the $0.3-$0.38 range for over three months. After an expected rebound from the $0.3 baseline, the coin witnessed a bullish engulfing candlestick that set the stage for a patterned breakout.
This rebound registered an over 60% growth in just a week. Consequently, the bullish flip on the EMA ribbons reaffirmed the increased buying strength. But the trendline resistance has provoked selling rallies over the last 11 months.
As a result, the bears could aim to evoke a reversal toward the EMA ribbons. A decline below $0.447 could further increase the chances of this.
In this case, the potential targets would lie in the $0.409 zone. An immediate rebound could retest the long-term trendline resistance before a trend-commital move.
Source: TradingView, XRP/USDT
The Relative Strength Index (RSI) entered the overbought region and chalked out an expected reversal. A continued decline toward the midline could hint at an ease in buying pressure.
Furthermore, the Chaikin Money Flow (CMF) marked lower peaks during the price action’s
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