For those who read this week’s Weekly Market Insight, you may recall that the post highlighted that XRP/USD was potentially eyeing lower levels.
Weekly timeframe exhibiting scope to explore lower
As you can see, the major altcoin has indeed navigated lower levels this week, down nearly 8.0% WTD and bound for support on the weekly timeframe at $0.53650. This follows a rejection from weekly resistance around $0.81623 in mid-July and the prior week’s weekly indecision candle. With room for further downside still seen on the weekly scale until the aforementioned weekly support, buyers may remain on the ropes this week and possibly into next week. Once, or indeed if, the unit shakes hands with $0.53650, this could be a location dip buyers make an entrance from, in line with the uptrend since mid-June (2022).
Short-term flow testing support, break lower?
Moving across to the H1 timeframe, short-term flow is challenging support from $0.57022. Despite the Relative Strength Index (RSI) being on the verge of chalking up positive divergence on the H1 chart—adding weight to a short-term rebound from current support to H1 resistance at $0.58401—the weekly timeframe’s lack of obvious support at the current price will be a concern for many buyers at the H1 support level.
Considering the above-noted analysis, chart studies imply a break of H1 support at $0.57022, a move swinging the technical pendulum toward the weekly timeframe’s support mentioned above at $0.53650. As such, a H1 close south of current support could unearth a bearish breakout scenario. Conservative breakout traders, however, may elect to wait for additional confirmation in the form of a $0.57022 retest as resistance before pullingthe trigger.
Source: FX STREET