2023-3-2 22:30 |
XRP has traded sideways for most of February, but there are bullish signals for investors to expect a break above the resistance line and another rally to new annual highs.
The token used by payment company Ripple has constantly consolidated, trading between $0.37 and $0.40 for the past month. For a moment, XRP bulls lost the strength to continue the January break of the downtrend. Still, as of this writing, XRP targets the next resistance level at $0.40, with indicators showing bullish momentum.
XRP is trading at $0.3815 and has found support at the $0.37 level. In the short term, the token closed the month just below its 20-day moving average (MA). A close above would have been a win for XRP bulls in the short term, but with solid support and the 20-day MA approaching the bullish crossover, XRP could establish a new trend for March.
The critical medium-term resistance for bears is the $0.54 level, a zone that bulls have not reached since October 2022. If XRP climbs to this zone and consolidates above the $0.5 level, it could target a retest of the $0.65 resistance, an area lost during the early days of the crypto winter.
These Indicators Reveals Critical Variables For XRPAccording to the crypto trader and analyst, EgragCrypto, on a Twitter post, the Moving Average Convergence/Divergence (MACD) follows the trends and momentum of the price action. This indicator is on the verge of a bullish cross for XRP.
MACD can identify potential reversals in price action when used with support and resistance levels to find price points where the trend may change direction across different time frames.
For EgragCrypto, the bullish cross on the MACD, with the Relative Strength Index (RSI) positioned around the 16 levels in oversold territory, provides a launch pad to move towards the oversold region, with a breakout of the nearest resistance points.
With the RSI in oversold territory, bulls could expect a reversal into overbought territory, giving them the momentum to consolidate above the nearest resistance at the $0.4 level.
The crypto analyst also used the Average Sentiment Oscillator (ASO), which shows the depth of market volatility and the strength/weakness of currencies, to analyze the probabilities of the next uptrend; the analyst concluded four leading indicators of the possible break of consolidation:
Depth of Market Volatility: HIGH Strength & Weakness of the trend: STRONG Indicates Market Trend: BULLISH CROSS level of stability to project possible Trend of a price movement: PRICE STABLE FOR ALMOST 4 MONTHSThe bulls seem to have the upper hand over the bears. If XRP breaks out of the 6-month consolidation and places itself above the resistance walls, the price action may approach areas last seen before the Terra collapse.
XRP is trading at $0.37, up 0.4% over the past 24 hours. The token has been dropping in the broader time frames and is trading below its 20-day MA, with a decrease of -2.9% in the last 24 hours.
In the 14-day and 30-day time frames, XRP has seen a decrease in its growth of -2.9% and -8.4%, respectively, and is still trading down -51.4% from a year ago.
Featured image from Unsplash, chart from TradingView.com.
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