XRP (XRP) rate dropped to important support. If this level holds, the price will show a bounce, which could develop into a bullish move.
Long term breakout
In early July, XRP broke through the long-term downtrend resistance line and continued to rally, reaching a high of $0.327 on August 27. Since then, quotes have been declining.
Altcoin found support around $0.23, where resistance was previously found. Immediate resistance is now at $0.40.
Technical indicators paint a neutral picture with a bearish bias. The MACD is giving signals for a bearish reversal, and neither the RSI nor the stochastic RSI is giving signals of bullish divergence. Moreover, the RSI is approaching 50, which could lead to a rebound.
The daily chart shows that the price not only reached support, but also touched the 200-day moving average, which acted as resistance before the upward breakout.
Technical indicators do not confirm the reversal, but show that the market is heavily oversold and at its lowest levels since the March crash.
On the six-hour charts, the RSI and MACD are giving impressive bullish divergence signals, and the RSI stochastic has formed a bullish crossover.
This may indicate the prospects for price movement in the direction of the $ 0.26 level.
Cryptocurrency trader @ Davecrypto83 notes on the XRP chart that the price will find the bottom around $0.23, after which it will aim at the $0.39 level.
Previously, it was assumed that the altcoin may have started forming a bullish impulsive wave structure from the lows of March 13, but after the decline last week, this scenario has lost its relevance.
At the same time, the wave analysis speaks in favor of maintaining the bullish mood of Ripple, which, apparently, completes the structure in the A-B-C shape (gray on the chart), having recently completed the fourth sub-wave (black on the chart) within wave C.
Wave C has already exceeded the 1: 1 level relative to wave A, so the next target is located at $0.367.
In the event of a decline below the high of the first wave of $ 0.211, this wave analysis will lose its relevance, which will automatically mean a deterioration in the short-term prospects of the coin.
In the short term, subwave 4 has formed in the A-B-C form (orange on the chart). If the minimum has already been reached, then the ratio of waves C and A was 1: 1, which is traditional for such corrections.
However, to confirm the XRP rally, it is necessary to break the downward resistance line connecting the beginning and end of waves A and B (red on the chart) in the shorter amount of time it took for wave C.
This means XRP should break the $ 0.28 resistance line by September 10th. Otherwise, the decline will continue.
So XRP has either completed its correction or is close to completing it. The loss of the $0.211 level will deprive the bullish scenario of its relevance, and a breakout of the downward resistance line at $ 0.28 will confirm it.