XRP Buyers Pushed Rise to $0.34, But Sellers Can Still Control

warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.

The short term trend for XRP has been bullish. However, data from Coinglass showed that the futures market was almost perfectly balanced. In fact, a slight advantage to sales deals went in terms of volume.

On the higher time frame charts, a three month range is seen. The tops of this range will provide a decent sales opportunity. Patience will be required before the XRP bulls can break in.

XRP – 12 Hour Chart

Source: XRP / USDT on TradingView

In early June, XRP broke below the $0.38 support level. Since then, the area itself has served as a stiff resistance. In the intervening months, the price formed a range (yellow) from $0.3 to $0.38. The midpoint of this range at $0.34 acted as support and resistance.

In August, XRP attempted for nearly two weeks to break above the $0.38 mark. In the middle of the month the bulls were exhausted and the price collapsed just below the middle of the range. It fell again after a few days to the $0.32 level.

At the time of writing, the bulls have flipped the script and pushed prices beyond $0.34.

Logic

XRP has been seeing bullish momentum in recent days, but it may run out of…

Source: XRP / USDT on TradingView

Indicators indicated a reversal in the bearish momentum. The Relative Strength Index (RSI) can cross the neutral 50 level and turn it into a support level. It was 61 o’clock at the time of writing. This showed that the bullish momentum was strong and could continue. The Accumulation/Distribution line (A/D) also broke above the May resistance level.

This development was much more significant. However, this does not necessarily mean that a move above $0.38 is coming soon. Rather, it indicates that such an outbreak has begun to ferment and could occur within a few weeks. Chaikin Money Flow (CMF) rose above +0.05 to show strong buying pressure as well.

conclusion

The increased demand showed that the XRP bulls had some power in the market. However, a breakout after a three-month resistance may take some time to materialize. Meanwhile, any return to the $0.38-$0.39 area would be a selling opportunity. This could change if the price can test $0.24 and turn $0.39 into an order.

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