Ripple’s bearish pennant experienced a downside break on the 24hr char as the 23.6% FIB level halted the latest buying efforts. However, falling beneath the POC (Point of Control) saw XRP approaching a crucial price region around the $0.384 mark.
Meanwhile, buyers have protected this zone for more than one year. Closing under the closest demand territory would offer shorting opportunities.
Nevertheless, the alternative token might witness a rebound if buyers resurge around the trend-line support. While publishing this content, the remittance token traded near $0.3856.
Ripple 1Day Chart
For now, the alternative token stood around a crucial juncture amid protracted bearish moves. Buyers haven’t had the opportunity to launch a streak of over three green candlesticks for more than two months amidst the recovery phase.
While the southbound journey neared the $0.3839 15-month support, Ripple might target two outcomes within the upcoming sessions.
The latest bearish engulfing candle from the pennant breakout saw XRP falling beneath the Point of Control. Moreover, selling volumes remained somewhat higher than buying strength within the past 72 hours.
Any closing beneath the nearest baseline can offer sellers the needed momentum to clear the path towards $0.33.
On the brighter side, Ripple’s current price is over-stretched from the 50 Exponential Moving Average. The price has witnessed a rebound after dropping 27% from the 50EMA over the previous year.
This reading, plus the steadiness with the nearest foothold, might ensure a short-term recovery. That way, a closing past $0.3914 might see the remittance token climbing towards the $0.42 – $0.44 value area.
Reasoning
The Relative Strength Index saw a compression around the oversold territory. The indicator confirms massive bearishness. Meanwhile, bulls should flip the hurdle at 33 to support a bullish run in the near term.
The Chaikin Money Flow struggled to secure a decisive closing beyond the zero-line for two months. Meanwhile, its latest highs made a bearish divergence with XRP prices. Any pullback might add steam to the bearish tendencies.
Final Thought
XRP’s declines towards the 15-month support opened double possibilities for investors. A possible rebound could see the remittance token climbing to $0.42 – $0.44.
Meanwhile, a downside move might reveal a profit-booking opportunity near $0.3. Lastly, enthusiasts should consider BTC’s actions to supplement the analysis above.
