Witnessing a formidable bearish response from the 61.8% Fibonacci resistance, XRP continued to subvert buying rallies on its way south.
With no surprise, the current market structure exposed XRP towards the lower band of the Bollinger Bands (BB). From here on, a likely revival toward the basis line (green) of the BB seemed plausible in the coming times. At press time, XRP was trading at $0.6492, down by 4.59% in the last 24 hours.
XRP 4-hour Chart
The sell-off initiated at the $0.9-ceiling translated into a 32.52% plummet over the past month. Thus, after falling dipping below the $0.69 baseline, XRP poked its two-month low on 27 April. In an attempt to hinder the southbound rally, buyers provoked a couple of green candles but failed to back it up on heightened volumes.
Over the last 12 days, the digital currency saw a descending channel (yellow, reversal pattern) setup. The basis line of the BB has offered quite a strong selling point that disregarded most recovery attempts. The current scenario led XRP’s price to fall toward the lower band of the BB on the 4-hour timeline.
There are good odds for the buyers to recoup their standing from the current lows and propel a short-term rally. A revival from the $0.62-$0.64 range could cause a test of the basis line of its BB or the $0.68 resistance. To modify the wider viewpoint in their favor, the buyers still had to find a way to break the chains of its current down-channel.
The Relative Strength Index highlighted a short-term uptrend from the oversold bottom whilst marking trendline support. A revival from this support would reaffirm the bullish divergence with price and bolster a short-term recovery.
Also, the CMF pursued a similar trajectory and kept its bullish tendencies intact. An extended recovery beyond the zero-line could give XRP a well-needed push toward the $0.68-zone.
In view of the mounting buying pressure on its 4-hour technicals alongside the oversold readings on its BB, XRP had bright chances of recovering toward the upper trendline of the current down-channel. Should the buyers insist on amplifying volumes, they would aim to challenge the 23.6% level in the coming days.
Lastly, keeping an eye on Bitcoin’s movement and the broader sentiment would be important to complement the aforementioned analysis.