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Ripple (XRP) Is Poised To Make a Trend Reversal That Favors Buyers

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XRP coin keeps extending the recovery from the lows of the end of November at $0.90 and now exchanges hands at $0.97. However, like other altcoins in the top-ten ones by market capitalization, the price is finding dynamic resistance around the 50-period simple moving average at the H4 chart.

The selling pressure from the highs of December 10 is still high across the board, as the impulsive construction to the downside looks forward to cracking lower below $0.90.

XRP’s Rollercoaster in 2021

The 200-period simple moving average also provides guidance to the bears in the short term and the RSI indicator.

Once the level of $0.90 gives up in favor of the sellers, there are higher chances for XRP to extend the bearish bias and eventually plummet towards the $0.85 level in a first instance, followed by the $0.78 level.

However, an interesting formation is underway in the cryptocurrency, which has witnessed a rollercoaster in terms of sentiment due to the tussles between Ripple and the US Securities and Exchange Commission (SEC).

200 SMA as the Line in the Sand for the Bulls

In fact, a possible trend reversal is on the cards as the price tries to develop a higher low at this stage, and once it breaks above the recent highs around $1.03, doors will open for the altcoin to skyrocket towards the 200 SMA around the $1.10 level in a first degree.

XRP’s volume profile shows high buying activity – Source: FXEMPIRE
XRP’s volume profile shows high buying activity – Source: FXEMPIRE

Still, XRP could face a dynamic resistance around that zone, and once it gets cleared out by the bulls, another bull run is set to take place towards the $1.20 area.

XRP should then pierce above $1.25 to confirm a golden crossover with the 200 SMA and trigger a bullish signal, together with an RSI indicator aligned with the bulls at the H4 chart, heading the crypto towards the $1.35 level.

Such a level is an interesting zone from an on-chain perspective, where addresses actively purchase XRP coins.

This article was originally posted on FX Empire

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