XRP has reached the target of the governing price pattern and has surged by over 128% since July 20 low. The uptrend appears to be retreating, as a technical indicator has printed top signal, indicating a sell-off is in the offing.
XRP price seems to have little room to move on the upside after Ripple price accomplished the ascending parallel channel target, tagging the topside trend line of the upper parallel channel at $1.14.
The Momentum Reversal Indicator has flashed a second consecutive MRI top signal, suggesting that Ripple XRP price could be heading for a trend reversal.
The Relative Strength Index also hints that Ripple price may be overbought, adding credence to the bearish thesis.
Should Ripple see its uptrend retreat, XRP price may find support at the 50% Fibonacci extension level at a price of $1.10 before falling toward the 38.2% Fibonacci extension level at $0.96, coinciding with the topside trendline of the ascending parallel channel.
Further selling pressure may push Ripple XRP price lower, toward the middle boundary of the prevailing chart pattern, corresponding to the 200 twelve-hour Simple Moving Average at $0.86.
Ripple may find a meaningful support level should the buyers struggle to lift prices higher against the overpowering distribution of the sellers at the lower boundary of the parallel channel, meeting the MRI support level and the 23.6% Fibonacci extension level at $0.78.
Slicing below the parallel channel is not expected at the moment unless a catastrophic event occurs, affecting the reversal of fortune for Ripple.
However, if XRP price is met with a spike in buying pressure, this would void the bearish outlook and put the target of $1.24 at the 61.8% Fibonacci extension level on the radar, should Ripple price surge above the breakout line given by the MRI at $1.19.
0 Comments