Published 19 hours ago
The XRP price showed a phenomenal rally in September’s third week as the market participants were quite optimistic about the legal case between the XRP and SEC. As a result, the coin price surged to a four-month high of $0.5523. However, amid the recent sell-off in the crypto market due to the Fed interest hike, the coin price witnessed a significant correction.
Key points from XRP price analysis:
- The XRP price is falling for the third consecutive day
- The 20-day EMA is trying to stall price fall at $0.423 support
- The intraday trading volume in the XRP is $2.85 Billion, indicating an 8% gain.
Source- Tradingview
After a sudden bull run, the XRP coin was bound for a correction phase in order to sustain its prices. Thus, the recent retracement tumbled the price by 24% and hit the $0.4235 support. Moreover, this Horizontal support is accompanied by a 50% Fibonacci retracement level and the 20-day slope, creating a strong area of interest(AOI) for buyers.
However, even if the XRP price couldn’t sustain about this level, the coin buyers could obtain another significant footing at the $0.39 mark. Thus, a daily candlestick closing below the $0.0423 support will extend the correction phase by another 6.8% to meet the support at $0.39.
This support level aligned with the 61.8% Fibonacci retracement level, and 100-day EMA offers a strong demand zone.
Thus, the aforementioned support holds a strong possibility to revert the prices higher and resume the prevailing recovery. The post-correction should breach the $0.4485 resistance, obtaining the first confirmation for price recovery.
On a contrary note, a breakdown below the $0.39 support will invalidate the bullish thesis and may plunge the XRP price back to the $0.36 mark.
Technical Indicator
EMAs: the rising crucial EMAs(20, 50, 100, and 200) indicate some early signs of a trend reversal.
Relative Strength Index: the sharp dive in the daily RSI slope accentuates that the excess buying pressure has stabilized, and the price should rise again if the market sentiment doesn’t witness any unfavorable situation.
- Resistance levels: $0.448 and $0.52
- Support levels: $0.423 and $0.36
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/these-support-levels-could-resume-xrp-price-recovery/