After a surge in selling turned the demand zone into a supply region, XRP’s growth recently came to a standstill close to the £0.33-mark.
As a result, the altcoin’s gradually increasing selling pressure caused the EMA ribbons to get a bearish turn. In the daily timeframe, this down phase warranted a breakdown of ascending channel.
In the meantime, buyers were unable to get any rebounding grounds to halt the breakout. A close over £0.28 would help them in the short term regain their strength. XRP was trading at £0.28 at the time of writing.
A powerful pullback appeared on the chart as the sellers controlled the trend after traversing through an ascending channel for about seven weeks. For 11 weeks, the £0.33 level served as a potent resistance level.
The buying power was restricted by the supply zone, with the altcoin reversing course below its EMA ribbons. A breakout that retested the £0.28-baseline appeared to be fueled by the bearish pennant setup that was in place at press time.
Given the expanding distance between the south-facing 20 and 50 EMAs, the bears may try to take advantage of any weaknesses in this area.
XRP would be in position to retest the £0.30-zone after a potential rebound from the £0.28-support. But a close below this level of support will simply result in the coming sessions seeing increased bearish pressure.
Furthermore, recent sell volumes outweighed buy orders by a wide margin. To stop a quick fallout into the £0.27-zone, the bulls must make a re-entry into the £0.28-level.
For the past ten days, the RSI has been in a position that is well below the midline. A close above the 38-resistance could confirm that the increased selling pressure has eased.
Additionally, the CMF indicated higher troughs to show a very slight bullish divergence with the price.
A rise over zero could trigger an increase in buying volume. The ADX indicated a weak directional trend while the DMI lines maintained their bullish posture.
Weak buying volumes and bearish flip on the EMA ribbons suggest that the bears will try to extend their rampage in the upcoming sessions. The CMF divergence could spur near-term rise before succumbing to long-term bearish tendencies. The previously discussed targets would apply.