Ripple (XRP) Technical Analysis: Outperforms Top 10 But Struggles Against Break Key Resistances
XRP was able to hold on to its lead as the best performing asset in the top ten for most of today, after news broke in the morning of Ripple entering the Chinese market following the new joint venture between American Express and the Lian Lian group. Later in the day, a promising update regarding the Ripple lawsuit moving into an allegedly more favorable Federal Court helped sustain bullish sentiment while the wider crypto market remained in the red.
As we headed towards today’s market close, however, bullish XRP traders finally gave out after failing to overcome two strong resistances at 8,224 and 8,284 Sats multiple times. The marked decline in trading over the past few hours has left XRP down at -0.16% against BTC, despite having spent most of today up at 4%.
What can we expect next for this asset? Let’s take a look.
The Story Earlier Today
Diving into the video analysis, we noted that XRP was struggling to overcome the two aforementioned resistances shown (red highlighted channel) and was being forecasted as ‘overbought” on a number of indicators over 4hr candles.
-The asset was only 3% shy of the overbought region on the RSI indicator
-The Williams%R was showing the asset as overbought
-The price action was tracking along the upper Bollinger Band
On top of this, XRP was also fighting against the downtrending resistance of the pennant pattern that it has been tracking inside since November 5.
XRP is accustomed to freak surges in bullish support, and many would have expected to see the asset explode through the resisting trend lines following today’s promising announcements. Unfortunately, this was not the case, and investors have been uncharacteristically slow to respond to Ripple’s new progress.
The Story Now
Looking at the 1hr XRP/BTC chart, we can see that bears have regained control over the asset in the short-term, as indicators show both buying momentum and pressure declining.
-RSI has fallen by 24% into the middle of the index channel
-The 12MA on the MACD has bearishly diverged below the 26MA, with bearish candles appearing on the histogram
-The CMF has plummeted below the zero line
-The first bearish dot has appeared above the price action on the Parabolic SAR indicator which confirms that the trend has turned bearish
Stronger confirmations of a bearish reversal will come once the candles start to close below the 1hr supporting kumo on the Ichimoku indicator and we see a bearish crossover between the Aroon Up and Aroon Down lines on the Aroon indicator.
For now it’s likely that XRP will break bearish briefly to one of the lower supports below before retracing back towards the upper pennant resistance for another test.
Ripple (XRP) Price Targets
PT1: First main support at 8,057 Sats (-0.65%).
PT2: Strong key support at 7,980 Sats (-1.60%) with overlapping uptrending pennant support line (black dotted).