- XRP struggles to move higher during the intraday Wednesday session.
- A slight move higher is possible, but a stall and fall from $1.10 are also likely.
- Bulls need to push XRP price above $1.20 to regain a solid bullish outlook.
XRP price can move to $1.15, then down to $0.84
All three oscillator levels for XRP are incredibly oversold.
The Relative Strength Index (RSI) has bounced off the midpoint between the two oversold conditions in a bear market (20 and 30). The Composite Index has also experienced a strong bounce – note that the current low of the Composite Index is the lowest low for 2021 on the 4-hour chart. This could be a leading indicator of further downside pressure.
Finally, the OPTEX Bands line reached the ultimate low, and a strong responsive bounce continued.
The upswing is likely to generate some carry-through momentum for XRP toward the $1.14 to $1.17 value areas where the Tenkan-Sen ($1.14) and Kijun-Sen ($1.17) reside.
In that event, XRP will likely have its RSI trading at one of the overbought levels in a bear market (55 or 65). The OPTEX Bands, likewise, will be trading at the overbought level.
XRP/USD 4-hour Chart
Whether XRP price moves to the $1.17 value area or remains near the $1.10 level, bears should watch for a continuation move south that will accelerate if XRP breaks below the most recent swing low at $1.01. The target zone for bears is a confluence zone of the 38.2% Fibonacci retracement and 100% Fibonacci expansion level – both at $0.84.
Bears will want to watch out for any increase in the number of XRP bulls that are keen on triggering a bear trap. A return to $1.22 will place XRP price back into a strong bullish condition within the Ichimoku system.