Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
XRP had to be a witness to bearish rallies that pulled the alt all the way to its $0.33-baseline last week. A strong rejection of prices at the 70.2%, 61.8%, and 38.2% Fibonacci hurdles provoked a string of red candles on the daily chart.
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Looking at the convergence of resistance levels around the $0.44-mark, a short-term pullback could find resting grounds at the $0.38-level.
At press time, XRP was trading at $0.4165, down by 3.86% in the last 24 hours.
XRP Daily Chart
Liquidations from the $0.86-ceiling transposed a 63.86% drop over the last 45 days. Thus, after falling below its trendline resistance (yellow, dashed), XRP poked its 15-month low on 12 May. While impeding the southbound rally, buyers induced a few green candles but failed to back it up on high volumes.
Over the last six days, the altcoin has seen a bearish pennant setup on the daily timeframe. The Point of Control (POC, red) has now constricted the buying efforts while the bears continue to display their edge. Also, the converging trendlines (yellow) have offered reliable caps and floors over the last two months.
A persuasive close below the pennant would clear the way for a retest of the $0.38-support in the coming sessions. Following the same, buyers would likely find renewed buying pressure and recoup their forces to challenge the bonds of its POC.
To modify the current trend in their favor, buyers have to still find a way to overturn the 20 EMA (red) and the 50 EMA (cyan).
The Relative Strength Index emphasized a gradual uptrend from the oversold region. A revival from the 33-mark support could open up chances for a potential recovery on the charts. Its current movements undeniably support the sellers.
Also, the CMF saw a reversal over the last few hours, after bearishly diverging with the price.
A host of hurdles alongside the $0.44-level could hamper the short-term recovery prospects of XRP. An eventual bullish comeback from the immediate support still needs enough thrust to glide through the bonds of its POC and Fibonacci barriers.
Ultimately, keeping an eye on Bitcoin’s movement and the broader sentiment would be important to complement the aforementioned analysis.
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