Technical Analysis and Market Entry: XRP/USD Bulls Have Laid The Foundations For A Promising Recovery
- XRP/USD has regathered upside momentum, running towards a second consecutive week in the green.
- A critical barrier in the way of further upside should be noted at $0.2180-0.2200.
XRP/USD: Recent Price Behaviour
XRP/USD has made a decent start to 2020, after bottoming out in the latter stages of last year sub-$0.2000. The price was forced to its lowest levels seen since September 2017, as part of the wrath from the current bear market.
XRP has been stuck within this downward trend from the all-time high area, with $3.00 territory. It has dropped a chunky 95%, as the price has struggled to escape this one-way train. Any rallies that are observed prove to be short-lived, very much unsustainable in the current market.
The difficulty for the bulls now is XRP/USD is further maturing, which means there are now more historical data. Barriers preventing upside have been established technically, making a recovery more difficult.
As a result, rallies are vulnerable to running into resistance, and then being sold by the bears. The price structure of XRP/USD via the weekly chart view shows that lower highs are being printed.
Critical Weekly Barrier
XRP/USD in the latter stages of 2019 was being supported by a barrier seen around $0.2180. Following several tests to the downside, bears managed to force a breach of this, opening the door to new pressure south. Given the extent of the prior acting support, this area is now likely to act as a challenge for the bulls to break down.
A rejection was already seen via last week’s weekly candle, having a short-lived wick above, but critically closing below. Should the bulls force their way for a break and closure above, then it could be encouraging, inviting further buyers coming into play.
How XRP Can Break Free of Trend South
XRP/USD bulls will need to void the current market structure to invite a fresh wave of buying pressure. As detailed earlier, price action is producing lower highs, and lower lows, the most recent high area will need to be seen. The region to breach is seen around the psychological $0.3000 mark.
A buy position would be attractive upon a weekly break and closure above the noted $0.2180 barrier. Targets to the upside would be of interest at; $0.2650, $0.2850, and then $0.3000. Further longs could be added upon the breakdown of the next major detailed high of $0.3000. Targets from here would be; $0.3400, $0.3600 and then $0.4000.
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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