$XRP has experienced a slight downturn following one of its most significant weekly increases in recent months, yet this shift hasn’t disrupted its bullish trend.
$XRP surged over 50% throughout the past week, surpassing $1.60 before sellers drove the price back down to $1.4852. This decrease reflects a 2.3% dip in a single day, but it is minor compared to the recent upward movement.
The pivotal question now is whether this pullback will result in a deeper downturn or provide $XRP with the opportunity to bounce back before another ascent. At this point, the 4-hour chart continues to support a bullish perspective. Essential support zones lie beneath the current price, while $1.6999 is the key resistance level to monitor.
$XRP Retreat Maintains Bullish Momentum
Currently priced at $1.4852, $XRP remains below the upper boundary of $1.5231 but is still above the EMA21 at $1.4194. The recent drop followed resistance encountered around the $1.5231 mark, where buyers failed to push prices any higher. Nevertheless, the pullback hasn’t reached a level that would significantly undermine the overall trend.
The EMA21 at $1.4194 is now recognized as the primary support level to watch. $XRP may approach this zone as the market stabilizes following its almost 50% weekly gain.
Additionally, the $1.40 level remains significant in the event of further declines, while the EMA55 at $1.2657 provides a more robust support level much lower down, helping to uphold the general trend.
The 4-hour STC indicator continues to reflect an active upward trajectory. $XRP also trades above both major exponential moving averages, with the EMA21 at $1.4194 positioned just below the current price and the EMA55 at $1.2657 situated much lower.
This positioning allows $XRP the flexibility to withstand selling pressure without immediately harming its overall structure. The price maintains its position in the upper half of the band, which supports the existing bullish configuration. If $XRP dips toward the EMA21 at $1.4194 and buyers manage to defend this level, the pullback could set the stage for another upward move.
$XRP Structure Focuses on $1.6999
The price configuration further supports a bullish outlook. Importantly, $XRP experienced its last confirmed bullish Break of Structure 26 bars ago at $1.0086, and it hasn’t reverted to test that level. Its most recent swing low remained untouched at $0.9882.
These points indicate that the recent decline hasn’t inflicted any significant damage on the overall structure. Concurrently, $XRP achieved a swing high of $1.6999 twelve bars ago. This level remains within reach above the present price and marks the primary target if buyers regain momentum.
For $XRP to strengthen its case for further upward movement, it needs to close above the $1.5231 upper boundary on a 4-hour chart. Until this occurs, the price might test the EMA21 near $1.4194. Holding the $1.40 zone during such a retracement would aid in maintaining the bullish setup.
If $XRP manages to break back above $1.5231, the next significant level to observe would be $1.5800. A successful push through that resistance could place the $1.6999 swing high within reach. If $XRP breaks above $1.6999 with a move buffered by ATR, then the subsequent target would be $1.7500.
Crucial Invalidation Point
Nonetheless, the bullish setup relies on a specific level that could shift the outlook. A 4-hour closing below the EMA55 at $1.2657 would disrupt the main trend support and weaken the prospects for additional gains. This scenario would also bring the $0.9882 swing low back into consideration as a potential downside target.
At present, $XRP remains above $1.2657, while both the $1.0086 bullish Break of Structure and the $0.9882 swing low continue to stand firm.
As long as the EMA55 remains intact, the recent 2.3% decline does not undermine the more than 50% increase observed over the week. Hence, the primary focus still lies on whether $XRP can reclaim the $1.5231 level and initiate another movement towards the $1.6999 zone.