The overall trend of XRP price is still sideways. The recent price correction has led the coin to drop to the critical support of $0.7. However, the technical chart shows the formation of a symmetrical triangle pattern, the breakout of which could start a new trend in XRP price.
Main technical points:
- RSI shows bullish divergence in daily timeframe chart
- XRP’s intraday trading volume is $1.74 Billion, showing a 3.69% increase.
The source- Tradingview
The last time we covered an article about XRP Price Analysis, the short-term downtrend pushed the price to the $0.7 support. The technical chart shows a number of candlesticks rejecting lower prices, indicating increasing buying pressure.
Furthermore, XRP price is also located at the support trendline of the symmetrical triangle pattern. According to this pattern, the price can bounce back from this support and recover towards the overhead resistance (around $1.1).
Moving in a sideways trend, the longer 100 and 200 EMAs have started to form. However, currently, the price is trading below these EMAs, indicating a downtrend.
The daily Relative Strength Index (43) is slowly approaching the neutral line. Furthermore, the chart also shows a bullish divergence, providing further confirmation for a bullish reversal.
XRP Price Could Retest the $0.7 Support
The source- Tradingview
On January 10, Ripple coin price rebounded from the $0.7 support with a morning star candlestick pattern. The price started to recover and broke the nearest resistance of $0.78. However, the price failed to sustain above this level and dropped below the breakout point.
If the price sustains below the $0.78 resistance, the currency could retest the bottom for other support before it can initiate a proper rally.
The average directional movement indicator (20) is moving downhill, showing that selling pressure is fading. The traditional pivot level shows overhead resistance for XRP at $0.776, followed by 0.838. On the downside, the support levels are at $0.688 and $0.62.