XRP price chart showing an overall sideways rally. However, this new year only extended the correction phase and the price fell to the $0.7 support level. The daily chart shows several candlesticks rejecting lower at this level, indicating the presence of massive demand pressure.
Main technical points:
- XRP price shows a lower rejection candle at $0.7 support
- XRP price chart shows 100- and 200-day EMAs on bearish crossover
- XRP’s intraday trading volume is $1.7 billion, representing a 6.8% drop.
The source- Tradingview
Previously when we mentioned an article about Ripple On December 22, 2021, the coin price hinted at a bullish reversal with a cup and handle pattern. However, the price was never able to break the $1 neckline and instead, it was rejected with a bearish engulfing candle.
Furthermore, the bloodbath in the crypto market increased selling pressure on the coin and pushed the price back towards the bottom support areas near $0.76 and $0.7.
The important EMAs (20, 50, 100 and 200) indicate a downtrend for XRP price. Furthermore, the histogram shows that the 100 and 200 EMA lines are poised for a bearish crossover, which could boost the bearish momentum in the market. However, in the event of a bullish reversal, the 20 and 100 EMAs are controlling minor and major pullbacks respectively.
The daily Stochastic RSI has dropped to the oversold zone. Furthermore, the K and D lines provide a bullish crossover, indicating a growing underlying bullish bias in the coin,
XRP price chart shows a falling wedge pattern
The source- Tradingview
XRP price is currently hovering above the $0.7 support, indicating demand pressure from this level. Furthermore, XRP price action displays a falling wedge pattern on the 4-hour timeframe chart. This pattern could signal a bullish reversal if the price breaks out of the overhead resistance trendline.
The key resistances for XRP price are at $0.77, followed by $0.85. For the upside, the support levels are at $0.7 and $0.62.