Mid-cap alts such as XRP were in the green during the early hours of Friday as trading inflows returned in the crypto market. Nevertheless, a clear downtrend was visible on the daily chart and the price had to claw back more ground to overcome a bearish bias. The 4-hour time frame identified if and when XRP would be able to extend its rally over the coming sessions. At the time of writing, XRP traded at $0.69, up by 8% over the last 24 hours.
XRP 4-hour Time Frame
Two sets of Fibonacci retracements were plotted on the chart to identify significant price levels. The first set was drawn on using XRP’s descent from $1.02-$0.54 (yellow) while the second set was plotted on XRP’s decline from $0.91-$0.62 (white). Using both sets, the region between $0.7235-$0.725 stood out as a key overhead resistance.
For XRP’s relief rally was to pick up more steam, a 4-hour candle had to develop above $0.735. The resulting move would also lift XRP above the SuperTrend Indicator’s sell-stop placed at $0.73. As more longs initiate above the resistance, XRP’s upside potential could extend to $0.86-$0.90. The projected swing would account for a 22%-30% ascent from the alt’s press time level.
Meanwhile, a rejection at the overhead barrier can trigger a severe drawdown if the price slips below $0.68 support. The next available defense stood at $0.63, marking an 8% correction. The safest zone for buyers remained at $0.57-$0.55 and the same would be under the spotlight if the broader market pairs gains over the weekend.
Indicators
XRP’s 4-hour metrics carried a bearish preference despite the latest price surge. The RSI has formed three peaks at 47 since 23 February but sellers have denied a recovery into bullish territory. At press time, a third rejection was in motion as the RSI dipped lower.
On the other hand, the MACD developed a bullish crossover after slipping to a 1-month low. However, the index had to rise past its mid-line to fully grab a bullish trader’s attention.
Conclusion
XRP had to close above $0.735 for an extended recovery. A denial anywhere below the aforementioned level could trigger another wave of downwards pressure. For the moment, XRP’s indicators were not supportive of another ascent and a bearish outcome looked likely.