Ripple (XRP) – Attempting to recover beyond the upper-line of the regression channel
Posted on Tuesday, June 21 2022 at 9:12 pm GMT+0000
Digital payment network Ripple (XRP) has been moving sideways over the last few days, and is currently hovering at a marginal distance from the upper-line of the regression channel stretched from the March 28th high.
Although the falling and negatively aligned 20- and 50-day exponential moving averages are still safeguarding the coin’s bearish picture, the oscillators are lately revealing some improvement in the market sentiment. The MACD, in the bearish territory, has nudged above its signal line and is north sloping while the stochastics %K line just poked beyond the %D line and is advancing above the 20 oversold threshold.
As things stand, the bulls will need a clear victory above the upper-line of the channel and the adjacent 20-day exponential moving average of 0.354 to drive towards the 23.6% Fibonacci retracement level of the March 28 – May 18 downfall at 0.434, a level which is reinforced by the nearby 50-day exponential moving average. A breach of the latter may encourage buyers to pilot for the 38.2% Fibonacci retracement of 0.526.
In the negative scenario, where the price fails to exit the channel from the upside, the bears will re-challenge the last Saturday’s trough of 0.287. By cracking that support hurdle, they will push towards the mid-line of the regression and the 0.240 bottom, stretched from January 2021. Next, they will sink to the 2020 low of 0.170.
In brief, although the medium-term outlook for Ripple remains blurry, some recovery cannot be ruled out. Nevertheless, traders may wisely wait for a decisive break above 0.354 to become more confident that the latest rebound could stretch forward.
