- XRP/USD found support at $0.2786 opening the door for gains above $0.3000.
- The retracement is directly linked to the reaction to the double top pattern.
- The bulls still have some energy left as the 100 SMA crosses above the longer-term 200 SMA.
Ripple single-heartedly pulled the cryptocurrency market from the rabbit hole it has been exploring over the last few days following the broad-based declines on Thursday last week. Initially, XRP/USD found support at $0.2786 opening the door for gains above $0.3000. However, the upside was limited marginally above $0.3100; a situation that encouraged the bears to continued pushing for dips below $0.3000. In fact, yesterday Ripple explored the levels at $0.2986 before a correction ensued marking the beginning of a bullish momentum witnessed today.
XRP/USD 15′ chart
Further correction above the ascending trendline stepped past both the 100 Simple Moving Average (SMA) 15-minutes and the 200 SMA 15′. Ripple zoomed above $0.3100 waking up more bulls who had been patiently looking out for a breakout. The price hit the levels above $0.3200 and formed a high at $0.3276 giving way for a retracement to $0.3175.
Double top pattern formation
The retracement is directly linked to the reaction to the double top pattern as observed on the chart. If the bearish pressure sends the price below $0.3200 short-term support, XRP/USD is likely to test $0.3100 – $0.3000 (new buyer congestion area) before rebounding to assault higher levels at $0.3300 and $0.3400.
Meanwhile, the Relative Strength Index (RSI) trends show that the bullish momentum has ground to a halt and bears are fighting for revenge. The RSI at 52.55 was purged from the levels inside the overbought earlier today and is heading towards the oversold. However, the bulls still have some energy left as the 100 SMA crosses above the longer-term 200 SMA.
Ripple Key Technical Levels:
100 SMA 15-minutes: $0.3094
200 SMA 15-minutes: $0.3089
RSI 15-minutes: Still above 50 average but pointing downwards>
Key support levels: $0.3100, ascending trendline, $0.3000, $0.2900 and $0.2786.
Key Resistance zones: $0.3276, $0.3300 and $0.3500.