XRP Gets Rejected and May Drop to $0.5165 in the Short Term
XRP's price faced resistance at the $0.5670 level in the past three days. This resistance occurred after the price of the remittance token reached the upper boundary of the Bollinger Bands (BBANDS) indicator within the last 48 hours, a signal typically interpreted as a sell signal by traders. If this sell signal materializes, there is a potential risk for XRP to undergo a correction down to the 20-day Simple Moving Average (SMA) line, which interestingly coincides with the $0.5165 support level.
Therefore, if the price breaks below the 20-day SMA line, it could lead to a substantial downward movement. In such a bearish scenario, the altcoin's price could decline to $0.4585 in the short term. Conversely, if XRP rebounds from the $0.5165 support level in the upcoming days, it could potentially set the stage for another upward move. Subsequently, XRP might make a second attempt to breach the $0.5670 resistance level. A breakout above this level within the next 48 hours, or after a rebound from the $0.5165 support level, could provide the necessary momentum for XRP to reach $0.6435 within the following week.
However, it's worth noting that XRP may struggle to surpass the $0.5670 threshold in the next 48 hours, as indicated by the Relative Strength Index (RSI) on XRP's daily chart, which suggests a weakening of buyer strength. Currently, the RSI line is approaching the RSI SMA line, which may signal a decrease in buyers' strength. Consequently, sellers might seize this opportunity to push the price of the remittance token lower.
Therefore, if the price breaks below the 20-day SMA line, it could lead to a substantial downward movement. In such a bearish scenario, the altcoin's price could decline to $0.4585 in the short term. Conversely, if XRP rebounds from the $0.5165 support level in the upcoming days, it could potentially set the stage for another upward move. Subsequently, XRP might make a second attempt to breach the $0.5670 resistance level. A breakout above this level within the next 48 hours, or after a rebound from the $0.5165 support level, could provide the necessary momentum for XRP to reach $0.6435 within the following week.
However, it's worth noting that XRP may struggle to surpass the $0.5670 threshold in the next 48 hours, as indicated by the Relative Strength Index (RSI) on XRP's daily chart, which suggests a weakening of buyer strength. Currently, the RSI line is approaching the RSI SMA line, which may signal a decrease in buyers' strength. Consequently, sellers might seize this opportunity to push the price of the remittance token lower.