Ripple Price Analysis: XRP Bears Struggle To Breach $0.7 Support Zone, Is A Reversal Next Move?
The XRP price chart shows an overall sideways rally. However, this new year has only extended the correction phase, and the price has plunged to the $0.7 support. The daily chart shows several lower rejection candles at this level, indicating the presence of intense demand pressure.
Key technical points:
Previously when we covered an article on Ripple coin on 22nd December 2021, the coin price hinted at a bullish reversal with a cup and handle pattern. However, the price could never breach the $1 neckline and instead, it was rejected with a bearish engulfing candle.
Moreover, the bloodbath in the crypto market fueled the selling pressure in this coin and pushed the price back to the bottom support zone near $0.76 and $0.7.
The crucial EMA(20, 50, 100, and 200) indicates a downtrend for the XRP price. Moreover, the chart shows the 100 and 200 EMA are poised to give a bearish crossover, which could fuel the bearish momentum in the market. However, in the case of a bullish reversal, the 20 and 100 EMAs are controlling the minor and major pullbacks respectively.Find Next Crypto Gem on KuCoin! Sign up to Claim $500 Welcome Bonus.
The daily-Stochastic RSI line has dropped to the oversold territory. Moreover, the K and D line provides a bullish crossover, indicating the increasing underlying bullishness in this coin,
XRP Price Chart Shows A Falling Wedge Pattern
The XRP price is currently hovering above the $0.7 support, indicating demand pressure from this level. Moreover, the XRP price action displays a falling wedge pattern in the 4-hour time frame chart. This pattern could signal a bullish reversal if the price breakout from the overhead resistance trendline.
The important resistance levels for XRP price are at $0.77, followed by $0.85. As for the opposite side, the support levels are $0.7and $0.62.Source