Baxia Markets
August 16, 2021

Could Ripple retrace in the short term?

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The cryptocurrency started an uptrend on July 21st and has carried that with just a few meaningless pullbacks. XRPUSD has been able to break through three resistance levels, and for the first time since May, it's trading above the 50% Fibonacci retracement at $1.23284.

The price is getting closer to another resistance level at 61.8%. The price could likely break this level due to the nature of the market, but from a technical analysis standpoint, it's unlikely.

The Bollinger bands are very wide, and this will bring higher volatility to the pair. The price trades above the upper band, suggesting that the price is relatively high; this will give a reason to many investors to close their positions with a profit. However, a good number of traders have been holding onto the crypto for a while, which could continue helping the price climb.


Ripple August 12th 2021

The relative strength index is oversold, currently at 82%. In April, we saw the RSI reach 88%, and it stayed oversold for more than 13 trading sessions, indicating that the market is comfortable buying the assets even at an overbought status.

The moving averages crossed 12 days ago; this indicates that the general trend is starting to change. Now, with the 50% retracement breakout, we could consider a trend reversal.


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