Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
The last few days have seen XRP steady the ship at the 23.6% Fibonacci level ($1.05). While the market did seem to hang in the balance between buyers and sellers, some of its indicators took bearish positions. Coupled with a symmetrical triangle, these signs did not look encouraging for XRP.
However, there are valid arguments on the bullish side as well. If the price holds above a key area as bulls tackle selling pressure, an upwards breakout would be likely.
At the time of writing, XRP was trading at $1.08, down by 3.2% over the last 24 hours.
XRP 12-hour chart
Source: XRP/USD, TradingView
XRP’s bulls seem to holding on to the 23.6% Fibonacci level over the past few days, despite multiple retests of the defensive area. Interestingly, the aforementioned area has been a critical defense for XRP since early August. It has triggered two key rallies of 24% and 36%, respectively. As a symmetrical triangle took shape, there were valid arguments for a breakout in either direction.
For bulls, holding on to XRP’s press time level will be critical for yet another market rally. A favorable outcome would see the price topple the 61.8% Fibonacci level at $1.24.
However, if the triangle functions as a continuation of XRP’s downtrend, a breakdown would be anticipated. In such a case, XRP would be vulnerable to a 10% decline towards 7 September’s low of $0.95.
XRP’s indicators flashed mixed signals. The RSI has been on a constant downtrend since mid-August and even slipped into bearish territory after 7 September’s sell-off. The MACD did not fare too well either. It has failed to recover after hitting monthly lows.
On the other hand, the Squeeze Momentum Indicator presented a slightly more favorable reading. According to its receding red bars, selling pressure appeared to be declining in the market. A pickup above the half-line would signify the onset of a bullish trend.
As XRP moved within a symmetrical triangle, certain conditions gave sellers an edge over a breakout. In a bearish outcome, the focus will be on a defensive line of $0.95.
However, bulls made their case as well. If selling pressure runs out as XRP maintains its 23.6% Fibonacci level, a price hike can be expected.
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