XRP has experienced a pullback following one of its most substantial weekly increases in recent times, but this shift has yet to disrupt its bullish framework.
The digital asset surged by over 50% in the past week, briefly surpassing the $1.60 mark before a downturn brought the price to $1.4852. This decline signifies a 2.3% decrease in one day, which remains minimal when compared to the scale of the recent upswing.
The pressing issue now is whether this pullback might lead to a more significant drop or provide XRP the necessary space to rebound before making another upward move. Currently, the 4-hour chart still supports a bullish perspective, with crucial support levels located beneath the present price and $1.6999 identified as the key price point to watch for upside movement.
XRP’s Pullback Maintains the Bullish Trend
As XRP trades at $1.4852, it remains beneath the upper band at $1.5231 but continues to hold above the EMA21, which stands at $1.4194. The recent price drop occurred as XRP encountered resistance near $1.5231, where buyers found it challenging to push prices upward. However, this pullback has not reached a threshold that would significantly impact the overall bullish trend.
The EMA21 level at $1.4194 is now regarded as the first significant support area. XRP may drift toward this range as market enthusiasm wanes following its impressive nearly 50% gain this past week.
Additionally, the $1.40 mark remains vital during any further retracement, while the EMA55 situated at $1.2657 provides a more robust support level lower down in the chart.
The STC indicator on the 4-hour chart continues to signal a robust upward trend. XRP maintains its position above both essential exponential moving averages, with EMA21 at $1.4194 just below the current price, and EMA55 at $1.2657 significantly lower.
This situation allows XRP to manage selling pressures without immediately jeopardizing its broader pattern. The price is also residing in the upper segment of the band, reinforcing the current bullish trend. Should XRP approach the EMA21 at $1.4194 and buyers successfully defend this level, the pullback could pave the way for another upward attempt.
XRP Structure Keeps $1.6999 in Focus
The established price structure further supports a positive outlook. XRP recorded its latest confirmed bullish Break of Structure 26 bars ago at $1.0086, and since then, it has not revisited this level. Its recent swing low at $0.9882 remains untested as well.
These points indicate that the recent setback has not inflicted significant harm to the overall structure. Moreover, XRP saw a swing high at $1.6999 a mere twelve bars ago. This level is now a significant target if buyers regain their initiative.
For XRP to bolster its case for another upward movement, it needs to achieve a 4-hour close above the $1.5231 upper band. However, prior to that, the price might test the EMA21 around $1.4194. Maintaining the $1.40 level during this retracement would be crucial for preserving the bullish outlook.
Should XRP surpass the $1.5231 threshold, the next level of interest will be $1.5800. A successful breach of this resistance could set the stage for approaching the $1.6999 swing high. If XRP then achieves a move above $1.6999 with an ATR-adjusted advance, the following target would be $1.7500.
The Key Invalidation Level
Nonetheless, the bullish setup remains sensitive to a particular level that could alter the outlook. A 4-hour close below the EMA55 at $1.2657 would compromise the main trend support and diminish the prospects for further advances. This would also bring the $0.9882 swing low back into the picture as a possible downside target.
At this moment, XRP is still trading above $1.2657, with the $1.0086 bullish Break of Structure and $0.9882 swing low remaining secure.
As long as the EMA55 holds steady, the recent 2.3% pullback does not negate the substantial weekly rally of over 50%. Thus, attention continues to be drawn toward whether XRP can reclaim $1.5231 and initiate yet another journey toward the $1.6999 level.
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