XRP charted a new all-time high last week but retraced in the following days. It tried to move above $3.6 again, but sellers returned.
Key Support levels: $3, $3.4
Key Resistance levels: $3.6, $4
1. Sellers Defend the Key Resistance
XRP had a fantastic rally in July after moving from $2 to $3.6 within two weeks. However, the resistance at $3.6 has put a stop to the rally as sellers returned here. This has pushed the price into a pullback, which could find support at $3.4 or $3 if selling becomes more aggressive.
2. Momentum Remains Bullish
Despite the current pullback, the overall momentum on higher timeframes remains bullish. This is best illustrated by the weekly MACD, which completed a bullish cross two weeks ago. Since then, the momentum has intensified as shown on the MACD histogram, which is making higher highs.
3. RSI Is Overbought
Another reason why XRP failed to break above $3.6 is that buyers became exhausted, and this weakness was visible on the daily RSI. At the time of this post, the RSI is in the overbought zone and is falling. The price may continue to fall until it finds support, with the best candidate for that at around $3.
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