XRP’s correction continues after being rejected at $3.6, but the asset managed to remain at a crucial support.
Key Support levels: $3, $2.7
Key Resistance levels: $3.6, $4
1. Correction Amplifies
Since touching the $3.6 level, Ripple’s token entered a correction and is making lower highs and lower lows. Most recently, the downtrend intensified with sellers making their presence known by taking the price to the $3 support level. If they manage to break it later, then bears will be able to test the support at $2.7.
2. Momentum Stays Bearish
In the past two weeks, the momentum turned bearish for XRP. Both the MACD and the RSI indicators crossed into bearish territory and continue to make lower lows at the time of this post. This indicates that the correction is in full swing and there is no reversal in sight yet.
3. Sellers Dominate
A quick look at the volume profile shows that in the last 15 days, sellers have absolutely dominated by closing five consecutive 3-day candles in red. This is slightly atypical considering that XRP had such a strong rally prior to this.
However, the volume profile is making lower lows, which indicates exhaustion from sellers. This opens the opportunity for buyers to return later on.
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Cryptocurrency charts by TradingView.