XRP returned to the $3 support level before rebounding. Will there be another nosedive, or is it ready for a lift-off?
Key Support levels: $3
Key Resistance levels: $3.6, $4
1. Pullback in Progress
After a sharp rally that took XRP to a new all-time high above $3.6, sellers returned to take this cryptocurrency into a pullback. The price has now corrected and arrived at the $3 support. So far, buyers have managed to hold at this level and stop the downtrend. However, their resilience may be tested again soon.
2. Momentum Favors Sellers
On the daily timeframe and below, bears have the upper hand right now. This can also be seen on the volume profile, which has been dominated by sellers lately. The good news is that the sell volume has been falling, which shows bears are less interested here than at $3.6.
3. MACD Bearish Cross
The daily MACD did a bearish cross last Friday, and the downtrend has accelerated since. Right now, there are no signs that this trend would change. This makes a retest of the $3 support likely. Should it hold for a second time, then buyers may have an opening to reverse this price action and put XRP back on the offensive.
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Cryptocurrency charts by TradingView.
