Technical Analysis and Market Entry: XRP/USD – Bulls are Replenishing Energy
- XRP has faced a tough time from the market bears over the last few sessions, dropping double-digits, some 13%.
- Huge protection is being observed by the buyers from $0.3000-$0.2800, and a breach could expose $0.2500.
XRP/USD: Recent Price Behavior
XRP has been on the back foot over the last three sessions, dropping over 15% during this period. The price has been forced to retreat once again to a huge area of demand known to spark buying interest. The noted zone can be seen tracking form the psychological $0.3000 price territory, down to $0.2800.
The XRP/USD pair initially started the month in solid form, having gained some 21% from 1st April up to 5th April, managing to produce its highest level seen since 10th January, when the market entered a steep bear trend. The big notorious supply barrier once again prevented further upside, running from $0.3800 up to the $0.4000 mark.
$0.3000 Support Significance
As already detailed, the $0.3000 level is the saving grace for XRP/USD, having been observed throughout 2019 so far and part of 2018. The last time buyers failed to protect the price here was a very brief period between August-September 2018. At present, $0.3000-$0.2800 is the bottom for this year.
Should the above-noted zone fail to hold, then another decent safety is seen not too far below at the $0.2700-0.2450 price range; it last traded here in September 2018. Further south of this, then $0.2000 would be exposed to the downside. XRP/USD has not traded at these depressed levels since December 2017.
Lower Highs – Downtrend
Since the highs in September 2018, XRP/USD has fallen firmly into the trap of a downward trend. The confirmation of this comes with the lower higher that are being observed after each rally. Bears are continuing to sell rallies as seen in; November, December 2018 and most recently in April of 2019. The bulls have not been able to sustain an upside run since the great 2017 bull run.
Given the reliability of the buyer’s protection in and around $0.3000, buying opportunities here are attractive. In terms of upside targets; $0.3500, $0.3800, $0.4000 should be noted. Longs could be taken from the current price around $0.3000, with stops just below the demand zone at $0.2750. Traders may consider adding to buy positions once the price has managed to push back above a breached supporting ascending trend line.
The noted support was breached to the downside earlier in the week on 24th April. It had been supporting the price since the low print on 12th September, where the bulls staged a strong rebound. Buyers will need to see this break for a further confluence of longs, tracking around $0.3125. Failure to see a daily break and close above could send the price down to $0.2500.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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