XRP Price Analysis: XRP/USD Reached $0.42, Potential Reversal Level
- XRP/USD topped at $0.46 price level;
- the price bounced off the supply level at $0.46;
- XRP dropped to the demand level of $0.42.
XRP/USD Price Medium-term Trend: Bullish
Supply levels: $0.46, $0.49, $0.54
Demand levels: $0.42, $0.39, $0.35On the medium-term outlook, XRP/USD is bullish. The coin was bearish last week when the price was at the demand level of $0.39 consolidating. The Bulls defended the $0.39 level. The Bulls’ momentum was increased and the XRP/USD price was pushed up to break the former supply level of $0.42.
The Bullish pressure extended towards the supply level of $0.46. The level held the price and the Bears opposed the increase in the price of the XRP. A Doji candle formed followed by a strong bearish candle and XRP price is currently testing the demand level of $0.42
Should the Bulls defend the demand level of $0.42, they may resume and continue the bullish trend. In case the level does not hold and the Bears’ strength is able to break down the level, then, XRP price may reach $0.39 level. However, the price is trading above the 21 periods EMA and the 50 periods EMA as evidence of a bullish trend. The Stochastic Oscillator period 14 is above 20 levels with the signal lines pointing down which connotes sell signal.
XRP/USD Price Short-term Trend: Bearish
XRP/USD is bearish in the short-term outlook. XRP was ranging last week within $0.39 and $0.42 levels on the 1-hour chart. There was a bullish breakout at the $0.42 level. The Bulls increased their pressure and the coin rallied to the $0.46 supply level.
The Bears prevented further increase in price with the formation of an evening star candle pattern (a bearish reversal candle pattern). XRP price penetrated the two EMAs downside and touched $0.42 level.
XRP price may reverse at the demand level of $0.42 as the Stochastic Oscillator period 14 is at 50 levels with the signal lines pointing up which indicates buy signal.