- Ripple recovered from its previous failure to violate the $0.76 barrier.
- The coin surged to the $1.06 key level but is now severely overbought.
- The $1.31 key level awaits the break out of the market.
XRP/USD is severely overbought at the $1.06400 key level. The coin has successfully executed a rally up to this point. The rally began as far back as the 21st of July 2021, after a previous unsuccessful bullish operation a month earlier. Ripple recovered from its previous failure to retest the $0.76300 barrier. The resistance was unyielding, but the persistence of the crypto eventually gave it a headway through.
XRP/USD Key Levels
Resistance Levels: $1.06, $1.31
Support Levels: $0.52, $0.76
XRP/USD Long Term Trend: Bullish
After breaking to the upside of the $0.76300 key level, there was an immediate retest of the level. The retest led to a 42% surge in price and the coin landed at $1.06400. Bulls became severely weakened and couldn’t hold at this level. Therefore, price slumped below the level. The fall would not last long as buyers chose the 50% Fibonacci level as a retesting point. The coin is now up and running again, aiming to break $1.06400, this time for good.
Ripple has been very bullish and unrelenting. This can be seen in how it springs off the EMA (Exponential Moving Average) and past the upper border of the envelope indicator. If it maintains this impetus, it will also subdue $1.06400. However, the Relative Strength Index indicates that XRP is now severely overbought. This means that bulls might be over-exerting themselves, leaving themselves vulnerable to weakening and allowing bears to step in.
Nevertheless, Ripple has gotten to and even surpassed this overbought level before, on the 6th of April 2021. This happened, curiously, around the same price level at 1.06400. The coin only retraced and surged up the more. Therefore, if XRP/USD is repeating this same pattern, it is definitely on track.
XRP/USD Short Term Trend: Bullish
The 50% Fibonacci ratio has combined with the EMA of the envelope to provide a platform for the coin to spring up. XRP is now bullish again after successfully retracing at that level and the crypto is back to confronting the $1.06400 resistance again. It might take some level of persistence to finally make it through again. The $1.31700 key level awaits the break out of the market.
Also read: How To Buy Ripple (XRP) In Australia? Detailed Guide
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