Technical Analysis and Market Entry: XRP/USD Breaks a Vital Demand Zone; $0.3000 Eyed for Buyers - Nodez News

Technical Analysis and Market Entry: XRP/USD Breaks a Vital Demand Zone; $0.3000 Eyed for Buyers

  • XRP/USD remains stuck within a stubborn bearish trend after losing momentum from the May-June run higher.
  • The price has dropped as much as 35% within the last three weeks.

XRP/USD: Recent Price Behavior

The XRP price has been very much weighted to the downside without any signs of things changing just yet. It has been falling since the back end of June, following such a strong push to the north. XRP/USD had enjoyed a decent advance between the May-June period, having gained as much as 60% before losing momentum. XRP/USD hit $0.5061, which was the highest seen since November 2018.

Price behavior was promising, which led into the noted jump followed by a period of consolidation. It largely signalled that incoming breakout, as a pennant formation was constructed. The breach by the bulls, however, seemed to mislead, turning out to be a false breakout. XRP/USD quickly lost ground and had failed to capitalize on the bullish pattern.

XRP/USD daily chart.

Critical Safety Area Broken

Given the described downside pressure, a critical demand zone has been broken down by the bears. The noted area runs from $0.4000 down to $0.3500 and it provided much support from May to the early part of July. The buyers were heavily camped within and had been keeping the price propped up, preventing a free-fall to the south.

The detailed zone had also previously served as a very stubborn territory of supply, which was seen from December and had capped the bulls right up to April 2019. As previously seen, on each occasion, the price came into contact with the supply, as sellers struck it with some force.

XRP/USD weekly chart.

Next Major Safety Zone

Looking to the downside, XRP/USD is on course to return to a big known area of demand. XRP is subject to regathering some bullish momentum at the psychological $0.3000 territory. The price last traded down at this area on 10th May, when it commenced its most recent and above-described bull run. XRP is notorious for finding buying interest here, as seen throughout the second half of 2018 and much of the first half of 2019.

Trade Recommendation

Given that momentum remains tilted to the downside, it may be worth waiting for XRP/USD to fall back down to the big $0.3000 area. The reliability of this area gives enough assurance that some upside can again be seen once and if the technical move plays out. A buy would be attractive should the price stabilize via the daily view within the noted zone.

In terms of upside targets; $0.3500, $0.4000 and then $0.4800 are the main ones. Stops would be placed just below the demand zone at $0.2450. An entry would be of interest as close to $0.3000 as possible.

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