XRP price continues to struggle higher and is now under threat from losing most of its gains over the past week. The Kijun-Sen at $1.05 continues to act as a source of significant resistance. The bearish readings in the oscillators exacerbate the resistance at the Kijun-Sen. The Optex Bands continue to trend higher and are nearing the extreme overbought levels. Hidden bearish divergence between the candlestick chart and the Composite Index also weighs in on further downside momentum. Finally, the Relative Strength Index faces resistance against the first overbought condition in a bear market at 55. A close above $1.20 is necessary to return XRP into a bull market. XRP price has broken out of the symmetrical triangle pattern and attempted to reach the bullish target set out by the governing technical pattern. However, Ripple fell short of reach as strength declined, as the bulls are catching their breath before the next run-up.

The optimistic target set out by the triangle pattern was set at $1.11, where the 100 twelve-hour Simple Moving Average (SMA) sits.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Currently, Ripple is consolidating and accumulating strength before its next move as it continues to trend sideways. XRP price is ranging between the 27.2% and 38.2% Fibonacci retracement levels at $1.01 and $1.07, respectively. The former acts as the first line of resistance for the token, where the 50 twelve-hour SMA rests. Should XRP price be faced with increased selling pressure following its rally, Ripple would discover further support at the 20 twelve-hour SMA before dropping toward the September 21 high at $0.95. If the bears were to continue to take control, the token would discover a strong foothold at the apex of the triangle, where the support line given by the Momentum Reversal Indicator (MRI) and 200 twelve-hour SMA coincide.

The next target for the bulls is to break above $1.07 resistance and tag the 100 twelve-hour SMA at $1.10. Further buying pressure may incentivize XRP price to shoot for the 50% Fibonacci retracement level at $1.13.

XRP/USD

Oct 05 2021