XRP targeted a temporary rally this week after the MACD and RSI gave a go-ahead to bullish investors. Once the upper resistance trendline is met, the price was expected to shift deeper into its demand zone and await further responses from the buying side. At the time of writing, XRP traded at $0.59, down by 4.6% over the last 24 hours.
XRP Daily Chart
XRP’s buildup phase has resulted in a stalemate between buyers and sellers for 10 days now. However, bulls had a greater chance to break the deadlock since the candles moved within a strong region of demand between $0.58-$0.50. This area has held strong since the crypto’s downtrend in May 2021 stretched into a 3-month bear market.
The combination of a resistance trendline and daily 20-SMA (red) at $0.70 would likely halt XRP’s progress after a short-lived 20% jump. During the next leg downwards, buyers would have to ensure that XRP holds above half a dollar to deny an additional 22% decline to $0.40.
Indicators
XRP’s optimistic outlook was augmented by an oversold RSI and a potential bullish crossover on the MACD. At the same time, their advance would most likely be cut-off at each of their respective half-lines. Sellers normally deny an extended recovery into bullish zones when a downtrend is still active.
Conclusion
A 23% swing to $0.58 is the best XRP can muster this week, barring a bullish blowout on the Bitcoin daily chart. Those trading XRP tokens can set up long trades at $0.55 and exit when the price touches the daily 20-SMA (red). Stop-losses should be kept below $0.50.