For XRP maintaining a position above $0.22 is extremely important at the moment. As indicated earlier, the long-term bullish rally is dependent on its mediation above this price range and XRP’s recent re-test at this support raised a few concerns. With the price currently near $0.24, some of the nerves have settled down but the possibility of another breach downwards was not exactly over.
XRP 12-hour chart
Source: XRP/USD on Trading View
From a positive point of view, XRP‘s price is currently moving within the trendlines of a descending channel which suggested that a bullish breakout might take place eventually. With the valuation keeping close proximity to the 50-Moving Average, a commendable distance needs to be attained from the 50-MA in order to register a breakout.
However, the Stochastic RSI indicated a different scenario. With the signal line overcoming the blue line at an over-bought position, the chances of a pullback significantly increase for XRP. At the moment, the direct immediate support is placed at $0.23. The blue line indicates the possible path for XRP if another setback unfolds in the 12-hour chart. While a quick bounce back will allow XRP to make a move towards $0.254, a lot of question marks are currently being raised on the 6-hour chart.
XRP 6-hour chart
Source: XRP/USD on Trading View
From a wider perspective, XRP is currently entering a critical period, being at the cusp of strong recovery or damaging pullback. With the help of Andrew’s Pitchfork tool, a price range was identified keeping definite support and resistance as the pivots. While the price has largely moved within the pitchfork range over the past couple of months, in order to encourage another bullish rally, the valuation needs to escape the current range.
Right now, XRP is again reaching the higher range of the pitchfork pattern but there is strong consolidation near the top. Considering the token is unable to escape the pitchfork range, a slump might take the value all the way down to $0.209, re-testing a new low since the end of July. Over the next few days, XRP’s trend will exhibit more clarity but for the time being, it needs to remain above $0.23 as well.
