- Ripple price stalls four-day losing streak while recovering from key SMAs.
- Steady RSI favors XRP rebound, but bearish MACD signals and multiple resistances may test buyers targeting $3.66.
- Slew of downside supports stand tall to challenge bearish momentum.
- Ripple’s short-term recovery is overdue, but a run-up towards new all-time high appears doubtful.
Ripple (XRP) price recovers above $3.15 on Tuesday, following a four-day losing streak, as the U.S. Dollar struggles to defend prior gains ahead of the key inflation data.
Apart from the U.S. Dollar’s consolidation ahead of the Consumer Price Index (CPI) data, supports from the key Simple Moving Averages (SMAs) also help the XRP to pare previous losses. This spark hopes for the much-awaited rebound, as the altcoin has yet to respond positively to the conclusion of the multi-year legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs.
Notably, a four-day-high trading volume, currently around $9.17 billion per Santiment, and a bounce in the XRP’s market cap to $186.58 billion, also keep the buyers hopeful.
However, bearish signals from the Moving Average Convergence Divergence (MACD) indicator, steady 14-day Relative Strength Index (RSI), and multiple upside hurdles make it challenging for the Ripple buyers to refresh all-time high (ATH).
Ripple Price: Daily Chart Favors Rebound
A clear U-turn from the 21-day SMA and an above-50.0 RSI favor the XRP buyers to expect further run-up in prices.
Still, bearish MACD signals could challenge the recovery moves, especially near the seven-month-old horizontal resistance at $3.33-$3.36.
Also acting as the key upside hurdle is an ascending resistance line from April 2021, close to $3.61 by the press time, as well as July’s peak of $3.66, XRP’s all-time high.
Should the Ripple buyers manage to keep the reins past $3.66, the odds of witnessing further rise towards the $4.00 psychological magnet can’t be ruled out.
Alternatively, a daily closing beneath the 21-day SMA support of $3.10 could quickly fetch Ripple to the $3.00 threshold, followed by the 50-day SMA support of $2.83.
After that, a five-month-long resistance-turned-support of $2.64, the 200-day SMA level of $2.45 and an ascending trend line from April surrounding $2.17 will act as the final defenses of the XRP bulls before surrendering.
Ripple Price: Four-Hour Chart Appears Less Bullish
Unlike the daily chart, the XRP’s four-hour outlook appears less bullish as it portrays the altcoin’s reversal from a three-week horizontal resistance and a downside break of a week-long ascending trend line. Additionally, the RSI is also below 50.00, but not oversold, and joins the bearish MACD signals to suggest a continuation of a slower grind toward the south.
However, a convergence of the 100-bar and 200-bar SMAs, close to $3.10, appears a tough nut to crack for the Ripple bears. If broken, this will highlight the monthly bottom of $2.72 and the 61.8% Fibonacci Retracement of June-July upside, also known as the “Golden Fibonacci Ratio”, near $2.58, for the XRP bears.
On the upside, the previous support line guards immediate upside of the XRP near $3.23, before the aforementioned three-week resistance around $3.33-36. In a case where the Ripple buyers cross the $3.36 hurdle, the daily chart levels will gain the buyer’s attention.
Conclusion
Ripple price shows signs of stabilizing after bouncing from the key short-term support levels, with the RSI hinting at a mild recovery. Even so, the XRP’s recovery momentum remains unconvincing, with multiple upside hurdles, leaving a full reversal of the week-long pullback in doubt, until the confirmation of the trend reversal.
Also read: Market Digest: BTC Slips to $119K as Traders Eye CPI, Tariff Truce and Alaska Talks
