In our previously published analysis on 22nd August, we expected that ripple will most probably have its next move towards 50% fibb retracement level and 61.8% i.e 1.16888 and 1.3215. The matter of concern was that in daily time frame XRPUSD entered the overbought conditions which yearned  for a bearish recovery before making any further highs and secondly we had a strong divergence being formed in four hourly chart keeping the relative strength index in regards. These two aforementioned factors became a reason for XRPUSD to go for a temporary bearish correction towards 50% and 38.2% fibb retracement level again as a retest. XRP price rallied after forming the third swing low on August 31 but this upswing did not have enough momentum to breach a critical barrier with bullish closing above 61.8% fibb level. As Ripple continues to consolidate below this barrier, a massive rally awaits.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Ripple has taken an exit from the Senkou Span A of the ichimoku cloud and adapted to a hawkish upswing above 50% fibb level, while currently trying to provide a bullish closing above 61.8% fibb level 1.3341. In four hourly time frame XRPUSD is forming bullish marubozu candlestick, indicating room for more gains and a closing above 61.8% fibb in daily time frame as well. If the aforementioned scenario is confirmed, the next targeted destination would be 1.47443 and 1.60179. But before these higher levels could be met, the relative strength index on interday time frames are showing overbought conditions and calls for a bearish correction before making any further gains. On the bearish side, a reversal below 61.8% fibb level - followed by a bearish closing below 50% fibb level -  would drive the pair towards exponential moving average 50 and 200 in daily to complete higher degree of bearish correction. 

XRPUSD

Sep 06 2021

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