XRP (XRP) stands out from the altcoin crowd in that has been retracing for about a week now, whereas most other altcoins and Bitcoin (BTC) are just now rolling over. And in this early-bird capacity, there may be support already showing up on the XRP chart.
We start on a 4-hour XRP/Dollar chart, where there is some slight but clear bull divergence showing up on the RSI. This is coming as the altcoin nestles into the local support zone, around $0.26.
We also see a bullish divergence on the histogram, which is starting to curl back to the upside for a bullish contraction. With the general sentiment in the markets turning bearish (to an extent) and cautious, we are probably not about to see any gains on the XRP chart; but finding some support here would be a victory in itself.
Coming to the XRP/Dollar daily, we can see why. XRP has been retracing into a very important support/inflection zone, with historical significance going all the way back to 2017. We don’t want to see this level lost; and what’s more, price is now retraced back into the golden pocket on the Fibonacci scale, and was neatly bought up there.
The histogram’s bearish contraction is starting to cool off with a bullish arch up forming on the daily. Taking this evidence, we can theorize that the current RSI level is not going to break.
Admittedly, things are looking less rosy on XRP/Bitcoin’s 2-day chart, where a significant support level has been taken out. That came, no less, after a long term and medium-term bull divergences on the RSI suggested strength. This paints a picture of XRP as a tricky market to trade.
Still, XRP is worth watching. It’s still putting in higher lows, even if they’re shaking ones. And as it led the altcoin market into what is likely a corrective period, XRP may be a leading indicator out of it as well.
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