XRP (Ripple), selling pressure continues even after rebound... If it fails to break $1.1, it will retest $1

▲ XRP

XRP rebounded from the $1 support level but was blocked by the $1.09-$1.1 resistance level. An analysis suggests that if it fails to break through the 50-day and 100-day exponential moving averages, it could give back its gains and retest $1.

According to U.Today, a cryptocurrency specialized media outlet, on August 4 (local time), XRP rebounded from its recent low and rose just below the 50-day and 100-day exponential moving averages. These two moving averages have repeatedly acted as resistance, preventing upward attempts during a long-term downtrend. Whether it breaks through this time is considered a turning point that will determine XRP's short-term recovery trend.

After weeks of bearish sentiment, buying pressure entered XRP around $1. Trading volume also increased significantly, and a small ascending triangle formed on the daily chart. XRP broke through the top of the triangle and surpassed several short-term resistance levels, but its upward momentum weakened after approaching the moving averages concentrated at $1.09-$1.1.

The long-term trend still favors sellers. XRP remains below the declining 100-day exponential moving average. The 200-day moving average is also falling from $1.4, indicating that a full trend reversal is still distant. The Relative Strength Index (RSI) recovered from the oversold zone but only reached 45-46. It failed to surpass 50, which is considered a bullish zone.

The key resistance level is $1.1. This is a zone with strong selling pressure due to the confluence of past concentrated trading prices and the 50-day and 100-day exponential moving averages. If XRP definitively closes above $1.1 on a daily basis, the 200-day moving average around $1.4 could become the next target.

Conversely, if buying pressure recedes again, XRP could return to the psychological support level of $1. If even $1 breaks, a significant portion of the recent rebound trend will be invalidated. The risk of further decline will also increase again.

[Article Key Summary]

-XRP rebounded near $1 but was blocked by the $1.09-$1.1 resistance level.

-Breaking through the 50-day and 100-day exponential moving averages opens up the possibility of rising to around $1.4.

-If the $1 support level breaks, recent gains could be given back, leading to further decline.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*