Technical Analysis – XRPUSD jumps to fresh 10-month high
March 30, 2023 7:28 am
XRPUSD (Ripple) exploded higher in the short term, posting a fresh 10-month high of 0.5844 before paring some gains. Moreover, the ascending 50-day simple moving average (SMA) is positively closing the gap with the 200-day SMA, where a potential golden cross may rejuvenate the advance.
The momentum indicators currently suggest that the recent rally is overstretched as both the RSI and the MACD histogram are coming down from their overbought territories.
Should the pullback resume, the price could encounter initial support at the November resistance territory of 0.5100 before the 0.4330 hurdle comes under examination. Falling beneath the latter, the digital asset might challenge the 0.4100 support, which lies very close to the 200-day SMA. If that barricade fails, the March low of 0.3513 could provide downside protection.
On the flipside, should the price reverse higher again, the September peak of 0.5587 may act as immediate resistance. A break above that zone could pave the way for the recent 10-month high of 0.5844. Failing to stop there, Ripple could then edge higher to test 0.6570, which acted as resistance both in January and May of 2022.
Overall, XRPUSD has exhibited high volatility in the short-term, which is also evident by the widening Bollinger bands. Therefore, a downside correction should not be ruled out as the latest advance reached extreme overbought conditions.
XRPUSD (Ripple) exploded higher in the short term, posting a fresh 10-month high of 0.5844 before paring some gains. Moreover, the ascending 50-day simple moving average (SMA) is positively closing the gap with the 200-day SMA, where a potential golden cross may rejuvenate the advance.
The momentum indicators currently suggest that the recent rally is overstretched as both the RSI and the MACD histogram are coming down from their overbought territories.
Should the pullback resume, the price could encounter initial support at the November resistance territory of 0.5100 before the 0.4330 hurdle comes under examination. Falling beneath the latter, the digital asset might challenge the 0.4100 support, which lies very close to the 200-day SMA. If that barricade fails, the March low of 0.3513 could provide downside protection.
On the flipside, should the price reverse higher again, the September peak of 0.5587 may act as immediate resistance. A break above that zone could pave the way for the recent 10-month high of 0.5844. Failing to stop there, Ripple could then edge higher to test 0.6570, which acted as resistance both in January and May of 2022.
Overall, XRPUSD has exhibited high volatility in the short-term, which is also evident by the widening Bollinger bands. Therefore, a downside correction should not be ruled out as the latest advance reached extreme overbought conditions.
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