XRP Price Prediction: Supply Pressure at $0.55 Threatens XRP Price for Temporary Correction; Buy Again?

3/31/2023 2:19:50 PMby Brian Bollinger
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XRP Price Prediction: Within a fortnight, the XRP price witnessed an aggressive rally and reached a ten-month high of $0.58. However, the buyers could not sustain at a higher level and plunged immediately below the $0.55 monthly resistance. Moreover, the long-wick rejection attached to the daily candle indicates the sellers are active at this level and could force a temporary pullback.

Key Points:

  1. A potential correction in XRP price will replenish the exhausted bullish momentum.
  2. A golden crossover between the 50-and-200-day EMA is a strong buy that could encourage more buyers in the market.
  3. The intraday trading volume in the XRP is $2.02 Billion, indicating a 36% gain.

XRP Price PredictionSource- Tradingview

Amid the recent recovery, the XRP coin price tried to breach the $0.55 neckline resistance of the double bottom pattern. This bullish pattern is often spotted at market bottoms and indicates that the buyers are aggressively accumulating at lower levels.

However, the $0.55 breakout attempt on March 29th failed and the daily candle closed below the mentioned resistance leaving a long-wick rejection. This rejection is a sign that sellers are aggressively defending the $0.55 resistance and buyers would need higher force to reclaim this level.

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Furthermore, the coin price shows more rejection candles at the $0.55 resistance level in the last few days, indicating a possibility for a bearish reversal. 

As per the Fibonacci retracment level, the potential correction could obtain strong support at 0.236 FIB level at $0.51, followed by 0.382 FIB at $0.48.

Any further correction will gradually weaken the bullish thesis of the double-bottom pattern.

Technical Indicator

Relative Strength Index: The daily-RSI slope reverted from the oversold rejection indicates the buyers overextended the recent recovery, and thus a minor correction is needed to recuperate the bullish momentum.

EMAs: the XRP price trading far above the daily EMAs(20, 50, 100, and 200) also suggests a price retracment will stabilize the overall bullish trend.

XRP Intraday Price Levels

  • Spot price: $0.534
  • Trend: Bullish
  • Volatility: High
  • Resistance level- $0.55 and $0.582
  • Support level- $0.51 and $0.47

The post XRP Price Prediction: Supply Pressure at $0.55 Threatens XRP Price for Temporary Correction; Buy Again? appeared first on CoinGape.

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