Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
XRP bulls were seemingly excited about a rebound from January lows as they regained their point above the Point of Control (POC, red).
As of now, while the immediate trendline resistance (yellow) remained solid, a decline towards $0.76 appeared before a rebound was likely. After this, the bulls could try to take advantage of the improved sentiment and continue buying until they bounce back from the $0.8 zone. At the time of writing, XRP was trading at $0.7873, up 2.11% in the last 24 hours.
XRP 4 Hour Chart
Source: TradingView, XRP/USDT
Since XRP has fallen below its long-term Point of Control (red) at $0.77, XRP collapsed on Jan. 22 to hit its six-month low. After that, the bulls stepped in to defend the 10-month support at $0.56.
Consequently, with a 67.4% rebound since then, XRP poked the $0.9 resistance. Since then, the alt has gradually declined as it witnessed a trendline resistance (now support) (yellow, dashed) on its 4-hour chart. For the past few days, XRP has seen a rising wedge (white) helping the alt find a close above its 20/50/200 EMA (green).
All retracements from here would find testing grounds near the 50 EMA (cyan) coinciding with the POC. With the recent purchase build-up, a possible recovery of the POC would be likely. In that case, XRP attempted to test the $0.8 zone before falling back to hit the wedge’s lower trendline.
rode
Source: TradingView, XRP/USDT
Since the RSI crossed into overbought territory on March 12, it has fallen below equilibrium in a falling wedge. For the past day, it saw a pattern breakout that tested the 61-point resistance. For the past four days, the RSI has maintained its resistance level, but the price has marked lower highs. Thus, a hidden bearish divergence is revealed.
In addition, the OBV also diverged with the price, reaffirming hidden bearish tendencies. So a short-term pullback towards the POC before a launch is possible could be conceivable.
Conclusion
Given the differences on the RSI and OBV, a short-term pullback towards the 50 EMA seemed likely before the bulls gathered strength to enter the $0.8 zone. Still, it would be important to keep an eye on Bitcoin’s movement and broader sentiment to complement the aforementioned analysis.