Ripple has become impulsive and broke below $0.58 to $0.57 price area. Ripple bounced back from $0.52 significant key level. The bulls to regain momentum and push the price upside in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s XRP/USD Technical Analysis.
July 20, 2021, | AtoZ Markets – Ripple price declined today morning during the Asian session against the U.S. Dollar. Ripple is currently trading around $0.52 price area and trying to push lower. After rejecting $0.65 to $0.63 resistance area, the bears have regained momentum and pushed the price down quite impulsively, and reached June 2021’s low. However, the bears failed to continue the bearish bias below $0.52 to $0.51 support level and had a 4-hour bullish candle close. As per the current price action, the price may recover higher towards the dynamic level in the coming days.
Ripple Bounced Back as the Price Requires an Upside Retracement
XRP is currently residing near $0.52 price area and trying to decline further. However, the bears have gained almost 140 pips after rejecting $0.65 to $0.63 price area.
Image: XRP 4 Hour Chart
According to the 4-hour chart, Ripple bounced back and currently trading around $0.52 price area. As per the current price action context, if the price can have an impulsive 4-hour bullish candle close above the last candle’s high, the bulls may regain momentum and push the price upside towards $0.57 to $0.58 price area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing over the price, which may pull the price higher as a mean reversion in the process. Also, the Stochastic Oscillator lines are currently residing below the oversold level 20 and may have a bullish crossover. It indicates that the price may retrace upward in the days ahead.
XRP May Continue Further Lower
According to the daily chart, Ripple bounced back, but the overall bias is still bullish. As per the current scenario, the price may retrace higher towards $0.57 to $0.58 price area. So, if the price retraced upside and rejects $0.57 to $0.58 price area with a daily bearish candle, the bears may regain momentum and push the price down towards $0.52 to $0.51 price area as a first target. The second target will be $0.42 to $0.40 price area if the price can break below $0.52 to $0.51 support level in the process. On the contrary, if the price breaks above $0.57 to $0.58 price area with a daily bullish candle, the price may recover upward towards $0.63 to $0.65 price area in the days ahead.
Image: XRP Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing above the price. Along with the Bollinger Bands middle band. So, the dynamic level may work as strong resistance to push the price down. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process.
To conclude, as long as the price residing below $0.58 to $0.57 resistance area, the bias will remain bearish. An impulsive daily close is needed to identify the definite momentum in the coming days.