After echoing the market-wide rally, XRP’s break above the $0.34 level helped buyers test the immediate supply zone last week. Meanwhile, buyers struggled to clear the obstruction of the 50 EMA (cyan) in the daily chart.
Due to the previous breakout, buyers would now aim to hold the $0.344 level. A close above this level would be key to making the most of future XRP moves. At press time, XRP was trading at $0.3458, down 4.01% in the past 24 hours.
XRP Daily Chart
After dropping to its 16-month low at the $0.33 level on June 18, XRP rebounded from the $0.3 support. But with the supply zone (green, rectangle) limiting buying rallies, the altcoin danced around its short-term EMAs and entered low volatility.
Over the past few weeks, XRP has seen a double bottom structure that has helped bulls propel a retest of the 50 EMA. Additionally, with the 61.8% Fibonacci level limiting buying power, XRP struggled to trade above the EMAs.
A close above the $0.344 mark could help the bulls retest the $0.37 zone in the coming sessions. Buyers needed to increase volumes to find a close above the supply zone to reverse the bearish narrative in their favor.
However, any dip below immediate support could delay the potential recovery for a few days.
The Relative Strength Index fell below the middle line to show a diminishing buying advantage. Although it took a neutral outlook, buyers needed to close above that mark to recover their strength.
Interestingly, the Accumulation/Distribution lines have held the immediate support level despite the recent losses. A break below this support would confirm a delayed accumulation on the chart. Nevertheless, the ADX showed a weak directional trend for XRP.
XRP’s rally back towards the double bottom breakout point could provide an opportunity for a comeback. In this case, the potential targets would remain the same as those discussed. Threats along the indicators could delay this expected recovery.
However, keeping an eye on Bitcoin’s movement and broader sentiment would be important in determining the chances of a bullish invalidation.