XRP: Outlining THE breakout strategy to remain profitable

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

XRP’s recent growth hit a plateau near the $0.39-mark after the recent spike in selling vigor flipped the demand zone into a supply region (green, rectangle).

Consequently, the altcoin’s gradual increase in selling pressure led to a bearish flip on the EMA ribbons. This decline phase entailed an ascending channel breakdown in the daily timeframe.

Meanwhile, buyers could not find convincing rebounding grounds to stop the breakout’s bleeding. A close above the $0.3319-level would aid buyers in recouping their forces in the short term. At press time, XRP was trading at $0.335.

Source: TradingView, XRP/USDT

After traversing for seven weeks in an ascending channel (white), the sellers took charge of the trend to provoke a strong pullback on the chart. The $0.39-level proved to be a strong resistance level for 11 weeks.

While the supply zone constricted the buying power, the altcoin marked a reversal below its EMA ribbons. The press time bearish pennant setup seemed to propel a breakout, one that retested the $0.33-baseline.

The bears might look to exploit weaknesses in this region, especially with the rising gap between the south-looking 20 and 50 EMA.

A potential rebound from the $0.33-support could position XRP to retest the $0.35-zone. However, an eventual close below this support level would only aggravate the bearish pressure in the coming sessions.

To top this off, the recent sell volumes were much higher than the buy orders. The bulls must re-enter in the $0.33-level to prevent an immediate fallout towards the $0.32-zone.

Source: TradingView, XRP/USDT

The Relative Strength Index (RSI) maintained