Ripple saw a bearish wave after its Point of Control (POC) canceled bullish resurgence hopes from $0.77. The rejection witnessed multiple red candlesticks within the past ten days. Meanwhile, the latest bearish engulfing candles have formed a challenging hurdle at the $0.65 – $0.7 value area.
Reversals from the prevailing selling spree might trigger a possible plunging wedge breakout that might encounter resistance within this range. While writing these lines, the remittance token traded at $0.5917, dropping 4.57% within the last 24hrs.
Ripple Daily Timeframe
The crash that originated from the ceiling at $0.86 saw Ripple losing 39.14% within the previous 33 days. Therefore, plummeting beneath the Point of Control had the alt touching its 3-month lows on April 30. XRP presented a falling wedge (reversal formation) pattern within the past couple of days.
Furthermore, the 50 Exponential Moving Average catalyzed a massive selling point that strengthened XRP’s southbound rally. The current downbeat had the cross-border transaction token declining towards the support range of $0.58 – $0.6.
As bulls upheld this region for more than nine months, they may reignite some buying momentum at Ripple’s present foothold. Should the selling strength continue fading, the alt might test the existing wedge’s upper trend-line as they target a $0.63 retest. Meanwhile, buyers have no control of current rallies as the gap between 20EMA and 50EMA widens.
Reasoning
After dipping into the oversold territory, the Relative Strength Index highlighted a significantly weak outlook. Though the indicator matched lows seen in January, revivals from prevailing lows appeared plausible.
Moreover, the Chaikin Money Flow depicted a bullish case on its troughs within the past week. These projections led to divergence with XRP prices in favor of buyers. A closing beyond the zero level would bolster buyers to kick-start a northward trend.
Final Thought
Considering the token’s bullish divergence with the Chaikin Money Flow and the sturdy support at $0.58, XRP might see a recovery phase over the upcoming sessions. Meanwhile, the southbound short-term Exponential Moving Averages might continue challenging Ripple’s revival. Lastly, enthusiasts should watch Bitcoin’s actions and broad market sentiment to ensure profitable activities.