Are crypto prices recovering due to hopium?
It could be the case, but all in all, the good news is: Ripple prices are benefiting from this unexpected pullback.
The XRP/USD prices are printing higher highs after periods of sharp draw-down.
If anything, prices are now trending below the primary support level—now resistance at around $0.85 to $0.90.
The former support line marked 2018 highs and is now capping bulls who are optimistic of another wave higher in a possible trend continuation pattern.
Ripple Market Performance
As we progress, how the Ripple price unwinds losses, especially of early last week, confirming the trend continuation and sharp losses of mid-May, may define the medium-term trend.
At present, though, bears have the upper hand, but this isn’t to say XRP holders are doomed.
A glance at the daily chart points to resilience and XRP bulls soaking selling pressure.
At spot rates, prices are down over 60 percent from peaks, pointing at how severe the drawdown and correction have been.
The middle BB—or the 20-day moving average—continues to hold, capping progress to the upside even though buyers are building up from the double bar bullish reversal pattern of June 23 and 24.
Clearly, for buy trend continuation, there must be a follow-through of the June 24 bull bar. This would drive prices above $0.70, perhaps above the middle BB, and unwinding losses of June 21 and 22.
Accordingly, if this pans out, it would possibly solidify the launching pad for the next wave of higher highs towards $1 and even $2 in the medium-term.
XRP/USD Prices Ready for Gains above $0.70
Market confidence spills from the position of an analyst who goes by the handle @DefendDark on Twitter.
Buongiorno! Hi there all. #XRP in the daily chart is at the oversold area. We will see $0.70+ very soon. You can find the daily Heikin Ashi chart below reflects the same support and resistance levels as we discussed earlier. #XRPCommunity #Ripple pic.twitter.com/Sdnhh6d58U
— Dark Defender (@DefendDark) June 27, 2021
He observes that the XRP/USD price is moving inside a wedge.
The chances of a close above the primary resistance level and $0.70 are high.
Supporting his view is how XRP/USD prices are resilient, defying selling pressure. Moreover, the RSI in the daily chart is already turning from the oversold territory, indicating strength, feeding XRP bulls.
Ripple Prices to Correct towards $0.40 before “Racing to the Moon”
XRP/USD traders agree that the uptrend is on. However, gains won’t be perpendicular and a one-day event.
— instaro (@instarotheguy) June 27, 2021
Trading using the Elliot Waves, one trader thinks the XRP/USD would most likely contract towards $0.40—a fundamental technical level and previous support of around January 2021 highs.
A retest of this mark would serve to be the catapult that would thrust the XRP price higher.
XRP/USD Still in Accumulation—a Breakout on the Cards
At present, reading from price action in the daily chart, XRP is moving inside a descending channel, a pennant in which risk-on XRP traders can find opportunities to go long.
Bears are in control of proceedings despite market-wide confidence from other traders.
However, a close above the vortex and reaction levels of this pair would mark the beginning of another parabolic wave in a bullish continuation pattern.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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