Bitcoin climbed towards the $48K highs last week before retracing to trade beneath $44,000 at this publication. Though the bellwether crypto plunged into a demand zone, it isn’t clear whether a bullish BTC might trigger highs for XRP. Bears appear strong around the $0.88 – $0.92 range. The remittance token can plummet to the $0.75 area in the coming few days.
Ripple – 1 Day Timeframe
The remittance token has formed higher lows on its daily chart since mid-January. The crypto also overcame the $0.1 and $0.7 zones to surge towards the $0.92 value area in the latest northward journey.
XRP has traded inside a descending channel setup, whose mid-level has served as a massive resistance zone in the past. While writing these lines, Ripple prices climbed past the area. Thus, the token seemed prepared for further gains.
The $0. 88 comprises a substantial zone. Moreover, XRP has failed to ensure a daily close beyond the area within the past couple of months. That way, the alt might drop slightly over the coming few days despite the bullish market structure and XRP prices staying beyond the mid-range area.
According to the daily price chart, the Relative Strength index plunged beneath the neutral 50-level and seemed to highlight reversals of the previous weakly bullish strength. XRP was yet to breach the resistance at $0. 88 and continued RSI declines will violate the support barrier at $0.76. Though the Stochastic Relative Strength Index stayed within the oversold region, it didn’t means an imminent bounce.
Also, the on-balance volume supported another drop in XRP. The OBV remained far from overcoming the orange zone even with prices wicking beyond the February peaks. That showed weaker buying momentum over the past few weeks.
Will the support barrier at $0.76 stop pullbacks, or XRP will test $0.7 again? Keep in mind that actions beneath $0.7 would mean bears dominating. Ripple bulls should keep the $0.7 – $0.75 range and rally past $0.9 to continue last month’s uptrends. Nevertheless, broad market sentiment remains critical for Ripple’s upcoming price reactions.