By the end of the week of July 19-26, the XRP token bounced off the horizontal support area of $ 0.60 and has been strengthening since then. This rebound was a very significant event for the coin, as this area previously played the role of resistance for 924 days.
The MACD and RSI indicators also support the bullish price movement.
MACD is in the green zone and rising, demonstrating that the short-term trend is growing faster than the long-term one. This is a sign of bullish momentum.
The RSI, a momentum indicator, is holding above the 50 mark, also signaling a bullish sentiment.
However, XRP is still moving along the downtrend resistance line built from the April high at $ 1.96.
Its bullish breakout will confirm the completion of the correction.
When XRP rushing north?
On the daily chart, the XRP rate is trying to break through the $ 1.40 resistance area (the 0.618 Fib level of the entire bearish retracement).
A break of this level will clear the way for the market to the September highs. In addition, it will cause a breakout of the aforementioned downward resistance line.
As with the weekly timeframe, the RSI and MACD indicators are rising, supporting the coin’s chances of a bullish breakout.
Cryptocurrency trader @Altstreetbet shared an XRP chart with readers, stating that the token has begun a new phase of growth and will soon break above the $ 2 mark.
– ᴀʟᴛꜱᴛʀᴇᴇᴛ ʙᴇᴛꜱ (@AltstreetBet) November 4, 2021
Wave analysis results do suggest XRP is in wave 3 (orange) of a five-wave bullish structure.
The rise in price since July 20 (highlighted in green) is very similar to the move in the format of a five-wave bullish pattern. This gives us reason to assume that the trend direction is upward and the September decline (highlighted in black) was a corrective structure.
In this case, XRP has just started wave three.
In case of absorption of the April high at $ 1.96, the next resistance will be waiting for the price at $ 2.86 (Fib 1.61 correction of the entire bearish move).
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