In this news Crypto Nugget from Wednesday to analyze the price situation of an altcoin, we will focus on the XRP cryptocurrency of the payment network Ripple. In full controversy sr bottom of conflict haswith the SEC, the XRP is nonetheless interesting to analyze technically to determine the trend that could emerge on the course over the next few weeks. So, without further ado, let’s head straight to TradingView.
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XRP is still under resistance
First, let’s analyze the asset on a broad time scale. We can see that after a rise on which XPR touched the 2 dollars, the drop was considerable since the price returned to a major pivot zone, represented in blue, at $0.287/0.302. Having managed to rebound many times in this area, this shows that buyers are somehow present on the market.
However, in parallel, the asset is moving below technical resistance at $0.4185 that was temporarily regained last summer, allowing XRP to return to touch former support at $0.56/$0.59. . Currently under first technical resistance, XRP must imperatively free itself from it so that we can establish as a first objective a return to the old medium that we have just mentioned.
However, a rejection on resistance with a return to the pivot zone should not be ruled out, quite the contrary. If this scenario is to occur, we will have to monitor the ability of buyers to maintain this level. However, by dint of bouncing on it, the zone tends to weaken, which could open the way to a new bearish leg towards the $0.22.
The price is currently in a period of compression
Now, for this second part of the analysis, let’s look at the daily scale. At the time when these lines are written, the particularity of the price lies in its situation of compression since it evolves, on the one hand, under the technical threshold of 0.4185 dollar which is in confluence with theEMA200 daily and on the other hand, above the POC of the volume profile of the MA100 as well as the trio of EMA 13/25/32 which materializes the uptrend in which the price has been evolving for several weeks.
Thus, over the next few days, we will most likely witness a powerful price move. If XRP manages to hold at the current levels and breaks out of the resistance zone, the price will be in a favorable situation for the continuation of the bullish push to gradually move towards the former support. However, if the bullish trend comes to break with a passage under the MA100, it will be necessary to start adopting a rather bearish bias which will of course require additional confirmations.
In this context, before returning to the pivot zone, we can expect a price reaction on an HVN which is located at $0.341/0.345. However, if this level cannot be maintained, the price will definitely take the direction of the weekly pivot zone. The bullish or bearish scenario will largely depend on the FOMC that will play out at the end of the day regarding the Fed’s interest rate hike.
To conclude, you have to understand that the scenario that will take place will play out in the next few hours. It will be necessary to adapt quickly so as not to be surprised by a reversal if you have been rather bullish for several days. Given the current compression, if you do not have a determined bias and your risk management is poor, it is very much like gambling. So, watch out, and while the current bias is bullish and we can see continued momentum, Powell’s speech could undo current plans.
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