This is a daily analysis of Coindesk analyst and chartered market technician Omkar Godbole.
XRP: Print spinning bottom
XRP Calculated out a “spinning bottom” candlestick pattern Monday that occurs when prices swing back and forth in a wide range, but end the day near the opening price. The shadows representing intraday high and low indicate that both buyers and sellers were active, but none of the pages could get a dominant position.
When the pattern appears after a remarkable price drop and by key support, as in XRP’s case, it signalizes that the sales pressure can subside and buyers step in to defend the price.
As seen on the daily chart, XRP’s spinning bottom has emerged after a 25% withdrawal from the July top of $ 3.65 and at a key support level near August 3 low, a point where the market previously rebounded sharply.
The XRPS spinning bottom does not guarantee an instant bullish pull, but it acts as an early warning of a potential bullish trend turning. Technical analysts and dealers typically look for confirmation from subsequent price action – such as a bullish candle that closes over the spinning bottom high.
In other words, the focus is on Monday’s high at $ 2.84, with the XRP currently changing hands of $ 2.80.
Not out of the woods yet
The 5- and 10-day simple movement average, which were widely used to filter short-term market noise, continue to trend downwards and signal continuous Bearish Momentum. In addition, the guppy multiple sliding average band has recently become bearish, with the bearish signal back just as intact right now.
In other words, Momentum remains tilted in favor of sellers, and if Monday’s low at $ 2.69 is broken, XRP could experience a sharper decline
Bullish undercurrent?
The MacD histogram, an indicator measurement of momentum using 12- and 26-week exponential moving average, has been consistently negative since the end of July. Still, XRP’s price has not experienced a steep downward, essentially trade between $ 2.70 and $ 3.00.
The relative resistance of prices means that a potential bullish crossover of MacD could mark the beginning of a sharp rally. The BTC market showed a similar dynamic last September when it traded under $ 60,000.
- Support: $ 2.69 (Monday’s low)$ 2.65 (swing high from May)$ 2.48 (the 200-day SMA)
- Resistance: $ 2.84 (Monday’s high)$ 3.38 (August High)$ 3.65 (July high).
Bitcoin takes key trendline
BTC has risen past a falling trendline that marked the withdrawal from record highs above $ 124,000. However, the immediate prospects remain bearish as prices remain below key resistance levels, including the Ichimoku cloud, the 50- and 100-day simple movement average and on August 3 low. In addition, a bearish divergence is clear in RSI on the monthly chart.
Overall, these signals paint a bleak image of the market where upward movements could encounter sales pressure. A clear negation of this bearish views would require the BTC successfully break down and hold over the Ichimoku cloud, which is currently acting as a critical resistance zone.
- Support: $ 107,286 (Monday’s low)$ 100,000, $ 98,330 (swing low from June 22).
- Resistance: $ 110,756 (Ichimoku -Skyen)$ 111,728 (the 100-day SMA)$ 115,780 (the 50-day SMA).
Read more: Bitcoin flows around $ 110,000 as dealers look against Friday data for the OUTSIDE
