XRP’s price dipped below $1.07 yesterday, but the impressive market rebound helped it erase most losses. However, it still needs to reclaim a key level before it turns more bullish.
Ripple (XRP) Price Predictions: Analysis
Key support levels: $1.00
Key resistance levels: $1.3, $1.6, $2
Bears About to Retest $1 Support
After a brief bounce, sellers returned and managed to take control of price action around the $1.18 level. The asset went into an evident downtrend in the following weeks that drove it to the aforementioned low of under $1.07. Although it appeared primed to retest the $1.00 support, it has rebounded swiftly, and there’s no immediate danger in sight.
While another drop to $1 could be considered bearish, it is too early to call it until this level turns into resistance. Buyers will also have another chance to show up at this key level and push bears away.
Can XRP Make a Higher Low?
To turn bullish on this price action, XRP will need to hold above $1.00 and make a higher low. Given that sell volume has been declining for months, this could provide buyers with an opening to regain control.
The current low is at $1.01. As long as buyers can stop bears before they reach that level, they have a chance to reverse the downtrend and regain momentum on their side. However, that will also require an increase in buy volume.
RSI Bullish Divergence
Another interesting signal that could put buyers back in control appears on the 3-day RSI, which shows a clear bullish divergence. While the XRP price made lower lows, the RSI made higher lows.
This is an early signal that could hint at a major reversal ahead. For that to happen, XRP’s correction needs to stop at $1.00 and then slowly recover its most recent losses. A higher high above $1.18 would confirm the reversal.
Source: CryptoPotato
