XRP entered the new week with a technical setup ie start for the benefit of the cows, although price action stuck within the range. A bullish divergence has appeared on the daily chart, suggesting that the negative momentum may be fading and a reversal is imminent.
However, XRP’s price structure is volatile and technical analysis has revealed a level that could support or reverse a recovery attempt another round of sales pressure.
A bullish divergence indicates that selling pressure is losing strength
The basis of the bullish case is this daily conflict is now visible on the daily candlestick chart. XRP is holding in a narrow range near the $1.34 to $1.50 range, but the momentum is no longer falling at the same rate.
Related reading
When the price turns lower, but the momentum refuses to follow, as the RSI now clearly shows on the XRP daily chart, it tells traders that the selling pressure is weakening behind each lower leg. The bears are still in control on paper, but they are running out of fuel.
This is exactly what happened at the end of February. The price fell to $1.13 per capitulation bath; RSI fell into oversold territory below 25. However, price action is now starting to stabilize and consolidate between around $1.34 and $1.40, but this has not resulted in the formation of highs.
However, the RSI is showing momentum and is slowly starting to recover to build a lower level. This difference is now confirmed on the daily chart with the start of a new week.
Why $1.34 is the level that the bull can not afford to lose
Despite the improving short-term outlook, the bullish thesis has a very clear line in the sand. according to technical analysis of A cryptographic analyst known as “Guy on Earth” anything less than $1.34 will invalidate the installation in no time. This makes it likely that level traders will be closely monitoring early in the week. At the time of writing, XRP is trading at $1.36, just slightly above the critical level of $1.34.
This support is important because it is effective change to the price range of the current range. XRP has already traded above it for several sessions, indicating that buyers are still willing to defend this area. According to the analyst, a clean break below $1.34 would open the door to another leg lower or see the cap close again at $1.34.
Related reading
Signals are one thing; is another confirmation and for XRP, Confirmation only comes in at $1.50. The chart above shows the upper boundary of the current range around $1.50, and this is the level that the bulls need to break if XRP goes through a recovery. talk to a real trend change.
Featured image from Getty Images, chart from Tradingview.com
