XRP Reclaims Crucial Price Support: Can Bulls Hold the Line?

After weeks of sideway chops, XRP, a cryptocurrency created by the founder of Ripple, runs another run at $3.00 per coin mark at $3.00.

XRP is trading just over $3.00 today, up 4%, up over 9% over the past 30 days. It’s enough to win the top three spots on the Crypto Market, with a market capitalization of over $182 billion.

The move shows that the broader crypto market is showing signs of life, and that Bitcoin is currently stable at over $120,000.

So, as we move on to “Uptober,” is there another good time for the XRP army?

Myriad is a forecast market built by DecryptionTraders at parent company Dastan are now slightly bullish on ripple linked tokens. Traders set the line at 55% where XRP pumps into $4 than XRP dives to $2. These odds were completely reversed last week when traders placed a 56% chance of a plunge XRP.

In other words, the market now appears to be stronger for XRP to rise, but countless traders are still willing to wager on farms. What should the chart say about it?

XRP Price: Mixed Signals Beneath the Surface

Today’s candlestick shows that XRP will test a spike of 3.8% from the daily low of $2.9424 to test a high of $3.0599 from the $2.9485 opening price. This is essentially a continuation of the price range that began on September 26th, when XRP was trading for around $2.70.

Price action appears to be superficial encouragement, but a deeper dive into the technology reveals a more subtle picture that the Bulls should have paused before they declare victory.

The chart reveals XRP trapped in horizontal channels following a downward triangle pattern that had been aligned from its July high of nearly $3.80. Today’s movement brings the token right to the upper limit of this channel, creating a key inflection point that can determine the next major movement.

The average directional index (ADX) of XRP is concerned about 14, well below the 25 threshold that checks trend strength. ADX measures trend intensity regardless of direction and signals to traders that the score is in the right direction and the actual trend is signaling over 25.

This weak reading of XRP suggests that the market lacks belief despite today’s profits. Traders usually see ADX in a direction below 20, as a sign of choppy price action where false breakouts are common. It’s running the car’s engine, but think of it as not gear. There is energy, but there is no clear direction.

The exponential moving average, on the other hand, tells a more optimistic story. An exponential moving average, or EMA, gives traders ideas about where price support and resistance lies based on the average price for the short-term, medium-term, and long-term.

XRP’s 50-day EMA hoveres around the $3.00 zone, providing dynamic resistance that perfectly matches the number of psychological rounds. This confluence creates a terrible barrier that the Bulls must conquer decisively. Good news? The 200-day EMA is comfortable low at $2.70, offering a solid safety net that is well above the bearish threshold. As mentioned here, if your 50-day EMA is trading for over 200 days, it shows that the long-term uptrend will remain intact, even if the short-term momentum sways.

Things are so trending that both EMAs are currently running in parallel.

The relative strength index (RSI) is 57, placing XRP in the neutral region. They are not over-acquired enough to cause profits, but not sold enough to attract bargain hunters.

With all things in mind, traders primarily consider this to be an obvious compression scenario. Some people choose to make a small deal with support and resistance that acts as a trigger for a stop loss, and this “boring” phrase can make some profit.

A squeeze momentum indicator that indicates “on” status also supports this paper. In combination with all the other neural indicators, this may suggest that we are approaching a critical moment, but weak ADX warns that breakout attempts may fail.

From 3 to 3, that’s the problem

The reality check is: Based on current conditions, $3.00 could be too much for XRP. The convergence of the EMA over 50 days with this psychological level creates a double whammy of resistance that has been proven to be stubborn in recent attempts. If the coin continues trading sideways, this barrier will be held tightly and XRP may be sent slightly lower to send support.

However, experienced traders may avoid opening over-utilized positions that trigger liquidation near this price line. This support is weak and coins may trade underneath in the short term without becoming bearish.

Silver lining? The $2.70 zone offers a much stronger footing. This level is consistent with previous integrated areas that not only sat comfortably on the 200-day EMA (maintaining bullish structures), but also served as a springboard for the assembly. This should find a buyer before the fix really becomes bearish, even if the Bulls can’t hold $3.00.

While XRP’s 3% pop is likely to be encouraged by the bull, technical photos suggest that a more careful approach might be wise. The 14 ADX shows that this is not a trending market yet, so it doesn’t control either the Bulls or the Bear. The squeeze indicator warns that there is a big move coming, but the weak momentum metric suggests that bullish breakout holders may not want it.

Smart Money will have to monitor several daily closings above $3.10 due to ADX rises as a confirmation of legitimate breakout. Otherwise, expect more sideways grinding for $2.70, as the Sandbulls line has to be followed.

Important levels to see:

• Resistance: $3.06 (immediate), $3.14 (channel top), $3.31 (breakout target)
• Support: $2.95 (EMA50), $2.70 (strong support), $2.60 (200-EMA zone)