XRP, the coin we love to hate, has been trending heavily lately on social media, and uptrending in price since late September. But it is running into a very major resistance zone, based on over a year of price history. It will be a tall order to get over this hurdle for more upside.
Starting on the weekly XRP/USD chart to frame the entire XRP market, we must draw our attention to the red band of resistance. When this region, around $0.28, served as support, it took more than a year of retesting to crack this area and put in lows as low as $0.21. Now being approached on the way back up, XRP’s price is getting bogged down here.
Given that it took so long to break this region as support, we can’t really expect it to break soon as resistance. If we look at the histogram indicator, however, we see that it has just crossed to the positive side after months in the negative range. Although this has a bullish look, the weekly bar has just begun and so we shouldn’t read into it too much.
Turning to the daily, the first thing we see is the formation of an uptrending channel — and we’re currently toward the bottom of it. The last specific rejection of XRP was at the 185 EMA, and so we might look to that average as an indicator of strength or weakness if it is tested again.
Volume has been flat during the month-long move up. Where the RSI had been trending up with price, it looks poised to roll over — but here it is too early to derive meaning. The histogram has been trending down, and at time of writing is starting to arch down with building velocity. And, of course, the strong resistance is currently holding XRP in place.
Finally, looking at the short 4-hour timeframe, we see a picture of buildup and consolidation with a potential rolling over of the short term uptrend. Notably, trade volume is falling, itself suggesting a larger move soon. The 55 EMA here has been very strong, so if it breaks we can probably kiss the short term uptrend goodbye.
The RSI isn’t much help here, showing both bullish and bearish signs — canceling each other out. The histogram is lingering at the negative side, which isn’t a promising sign. Ultimately, we can probably expect the short term uptrend to either break down or extend up within the next day or two.
Although XRP is at the bottom of its larger chart, and thus a good prospect from a risk/reward standpoint, it doesn’t necessarily look like a great buy at present. The major resistance could take a while to crack, and the short term uptrend may be turning around. A larger move is likely soon, though, based on the charts.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
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