The month of May saw XRP fail to break above its trendline resistance as the 23.6% Fibonacci level held firm. The altcoin is battling to find a convincing break as the squeeze phase progresses.
Shorting chances would exist if a close below the immediate demand zone occurred. XRP, on the other hand, could bounce back toward the 23.6% level if buyers regain their strength at the £0.34-resistance. XRP was trading at £0.32 at the time of writing.
XRP has been pressed for about a month after the recent bearish rally found support at the £0.30-baseline. The bulls haven’t been able to generate a string of trend-altering bullish engulfing candlesticks in the last two months.
XRP has been hanging at its Point of Control since making a 15-month low at £0.26 on May 12th. The buyers, however, have historically sought to induce a resurgence by pushing the 20 EMA much beyond the 50 EMA.
The asset’s steady rise enabled it overturn its two-month trendline resistance and turn it into support. However, since early April, the 20 EMA has stifled most buying attempts.
A close below the POC would provide enough momentum for sellers to attempt a retest of the £0.30-level. A move past the immediate trendline resistance, on the other hand, might expose XRP to an upside move into the 23.6% Fibonacci level.
The RSI ranged from 36 to 41 in compression. To establish a favourable situation for bullish activities, the bulls still needed to overthrow the 41-resistance.
The OBV also registered a bearish divergence with the price with its recent peaks, resulting in difficulties for the buyers to find a sustained break above the 20 EMA. Despite this, the AO has been steadily improving its position as it approaches zero.
The dip in XRP to its 17-month support level of £0.30 has created two possibilities for traders and investors.
Shorting would be possible if the price fell below the demand zone, with a take-profit level in the £0.24 range. Any possible rebound might lead to a test of the 23.6% mark.