- The XRP struggled for an upward move during intraday trading on Wednesday and Thursday.
- A slight move up is possible, but a stall and drop below $ 1.10 are also likely.
- The bulls need to push XRP price above $ 1.20 to regain solid bullish perspective.
The XRP price development on the 4-hour chart indicates a continuation of the downward trend. At Ripple, however, a certain bullish price development can be observed, which could continue until tomorrow’s trading day.
The XRP price can rise to $ 1.15 and then drop to $ 0.84
All three oscillator stages for XRP are incredibly oversold.
The Relative Strength Index (RSI) has bounced midway between the two oversold states of a bear market (20 and 30). The Composite Index has also seen a strong rebound – note that the current low of the Composite Index is the lowest low for 2021 on the 4-hour chart. This could be a leading indicator of further downward pressure.
Eventually the OPTEX tape line hit its all-time low and a strong countermovement continued.
The rally is likely to create some carry-through momentum for XRP towards the $ 1.14 to $ 1.17 value ranges where the Tenkan-Sen ($ 1.14) and Kijun-Sen (1, 17 $).
In this case, the XRP’s RSI will likely trade at one of the overbought levels within a bear market (55 or 65). The OPTEX bands are also likely to trade in the overbought area.
XRP / USD 4-hour chart
Regardless of whether XRP price moves in the $ 1.17 area or stays near $ 1.10, the bears should be on the lookout for a continuation of the move south, which will accelerate as XRP occurs falls below recent swing low at $ 1.01. The target zone for the bears is the confluence of the 38.2% fibonacci retracement and 100% fibonacci expansion levels – both at $ 0.84.
The bears should watch out for an increase in the number of XRP bulls trying to set up a bear trap. A return to $ 1.22 would bring XRP back into a strongly bullish state within the Ichimoku system.