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XRP Price Analysis: Choppy Action Continues as Ripple Loses $0.4 Level

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It’s been exactly a month since the market crashed due to the failure of the Terra ecosystem. During this period, XRP found itself in a consolidation zone. According to the historical record, the 200-day DMA can be used as a benchmark for assessing short-term momentum.

Technical analysis

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By Grizzly

Daily chart

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On the daily time frame, the bears were able to push the cryptocurrency below the rising line (yellow) that accompanied the price after the Covid crash. The first attempt by buyers to break above this line was not successful. XRP is currently trading above the horizontal support at $0.33.

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An interesting point worth paying attention to is the interaction with the 200 DMA. Historically, whenever the price fell below this moving average, the bulls tried to bring it back. This pattern has been repeated several times since the Covid Crash.

The 200-day DMA is now at $0.71, while the rate of decline of the 200-day DMA has slowed down (highlighted in white). In order for the bulls to retest this moving average, they must first break through the $0.5 resistance.

Source: Trading View

If this recent sideways trend continues, the likelihood of reaching the mentioned resistance range is relatively high. Just as any uptrend is not permanent, downtrends will eventually correct upwards. In this scenario, if the bulls defend the horizontal support at $0.33, an attempt to rebuild the 200-day DMA is a likely next move.

Key levels of support: $0.33 and $0.24
Key resistance levels: $0.46 and $0.55

Moving averages:

MA20: $0.40
MA50: $0.48
MA100: $0.63
MA200: $0.71

XRP/BTC chart

Against BTC, the price has corrected over 60% from its last peak in over a year. It is currently hovering inside a falling wedge (yellow), which is technically a bullish pattern.

In the optimistic scenario, the bearish momentum of the recent sharp drop will subside. After that, the price may start to recover up to 1550 sat. Failure to do so may result in a further fall towards the support levels below.

Key levels of support: 1250 sat and 1100 sat
Key resistance levels: 1550 sat and 1700 sat

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Disclaimer: The information found on Cryptooshalais the property of the cited authors. It does not represent CryptoPotato’s opinion on whether to buy, sell or hold any investment. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.






Credit : cryptopotato.com

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