Ripple (XRP) – Pulling back following September remarkable rally
Posted on Tuesday, September 27 2022 at 8:27 pm GMT+0000
Ripple (XRP) outperformed the rest of the crypto market over the previous weeks and skyrocketed to a fresh 4-month high at 0.560. However, the rally fizzled out near the 50% Fibonacci retracement level of the April – June freefall and the price reversed sharply lower.
Nevertheless, despite the recent setback, the soaring and positively aligned 20-and 55-day exponential moving averages are sponsoring the current minor uptrend.
Meanwhile, the oscillators are mirroring the latest negative move. The RSI slipped beneath its moving average and is approaching its equilibrium line, while the stochastic pulled back from the 80 level and created a bearish crossover within its %K and %D lines.
The current retracement did not harm the medium-term positive structure yet but could see a further continuation in the coming sessions. In this scenario, the price could seek shelter initially around the 20-day exponential moving average and the July 30th inside swing high around 0.411. If the latter proves easy to clear, the 55-day exponential moving average seen around 0.382 could try to catch the fall. Should it fail to hold, the decline would speed up towards the June 18th bottom of 0.287.
However, if the aforementioned moving averages manage to add a strong footing under the price, the bulls may attempt to re-challenge the 50% Fibonacci retracement level of 0.544 and the recent high at 0.560 while aiming to underpin the current positive structure. By successfully overrunning these barricades, they will sustainably crawl towards the 61.8% Fibonacci level of 0.604. Clearing that too will further boost optimism that the upward trajectory might hold on for longer and open the way toward the area linking the April 4th inside swing low and the 78.6% Fibonacci level at 0.681 – 0.691.
All in all, Ripple’s medium-term uptrend remains intact, and the recent downside correction is nothing but a normal reaction following the last sturdy rally. Thus, traders are advised to look for clear reversal signs near the moving averages to reinstate long positions.
