- Ripple price prints the first daily gain in four, bouncing off a weekly low within a six-week symmetrical triangle.
- Nearly oversold Stochastic sparks XRP’s corrective bounce, but 21-day SMA guards immediate recovery inside triangle.
- Sluggish momentum indicators point to a continuation of the short-term XRP consolidation pattern within a triangle.
- Overall, the bullish trend remains intact unless Ripple sellers break the key $2.18 support level.
Ripple (XRP) price reclaims $2.90 during a corrective bounce from the weekly low, up 1.6% intraday to snap a three-day losing streak early Tuesday.
In doing so, the XRP buyers take a clue from nearly oversold Stochastic while cheering news surrounding Gemini’s Ripple Credit Card.
Read: Gemini’s XRP Credit Card Launches: Earn 4% Crypto Back on Everyday Spending
Still, a slew of upside hurdles stand tall to challenge Ripple’s immediate recovery within a seven-week-old symmetrical triangle formation.
That said, the quote’s recovery also lacks support from the trading volume, even as the market capitalization rebounds. According to the latest Santiment data, XRP’s daily trading volume pauses a three-day increasing trend while easing back to $6.98 billion, whereas the market cap recovers to $173.48 billion.
With this, Ripple’s short-term recovery looks more likely, though it may still stay within a broader consolidation phase.
Ripple Price: Daily Chart Points To Consolidation Pattern
A symmetrical triangle formation since July 12 restricts the XRP moves between $3.22 and $2.80, with the 21-day SMA acting as an intermediate halt near $3.08.
Notably, the Stochastic’s U-turn from oversold territory suggests a continuation of the immediate recovery in prices toward the 21-day SMA hurdle of $3.08, with $3.22 acting as the next key resistance.
In a case where Ripple crosses the $3.22 resistance level, a seven-month horizontal area around $3.33-$3.40 will be crucial to watch for buyers, clearing this could allow them to challenge the record high surrounding $3.67 and aim for the $4.00 psychological magnet.
Alternatively, the aforementioned triangle’s bottom, around $2.80, could challenge Ripple’s fresh selling before the $2.64-$2.65 support confluence, encompassing the 100-day SMA and a 5.5-month horizontal resistance-turned-support.
Should the XRP bears manage to smash the key support area, the 200-day SMA and an ascending trend line from April, respectively near $2.47 and $2.18, will act as the last line of defense for the bulls, breaking which will direct sellers toward the yearly low of $1.61.
Ripple Price: Four-Hour Chart Signals Short-Term Recovery
The XRP’s recent rebound traces the Stochastic’s U-turn from the oversold territory, allowing buyers to face gains. However, a convergence of the 100-bar and 200-bar SMAs, near $3.06-3.08, could challenge recovery moves.
Following that, the stated triangle’s resistance surrounding $3.22 and the $3.33-$3.40 resistance zones, as well as the ATH of $3.67, will gain the market’s attention.
On the flip side, Ripple’s retreat needs validation from a downside break of the triangle’s bottom, close to $2.80.
If the XRP stays weak past $2.80 support level, the monthly low of $2.73 and the mid-July swing low near $2.66 might offer intermediate halts during a likely south-run toward the deeper levels discussed on the daily chart.
Conclusion
Ripple’s short-term recovery appears promising amid a nearly oversold Stochastic, but the quote remains capped within a triangle formation.
That said, the XRP’s successful break above $3.22 could allow buyers to aim for the key resistance zones and the ATH, while a drop below the $2.80 support level risks the quote’s deeper declines.
With this, Ripple traders should watch these critical levels to gauge its next move.
