XRP: Spin to print the bottom
XRP has recently displayed what’s called a “spinning bottom” candlestick pattern. This occurs when prices fluctuate within a wide range but tend to revert to opening levels by the end of the day. The highs and lows highlight that both buyers and sellers have shown interest, yet neither has been able to take charge.
In XRP’s case, such patterns tend to appear following a notable price drop, suggesting a reduction in selling pressure and an emerging interest from buyers to stabilize prices.
The daily charts indicate that this spinning bottom materialized after a 25% drop from July’s peak of $3.65, with a significant support level observed on August 3rd.
The appearance of a spinning bottom, while not a foolproof indicator for immediate upward movement, serves as a cautionary sign of a potential bullish reversal. Typically, analysts and traders will seek further confirmation from upcoming price movements, such as bullish candles that exceed previous highs within the spinning pattern.
For reference, the target for XRP on Monday was set at $2.84, with the token currently trading around $2.80.
I haven’t left the forest yet
Looking at simple moving averages over five and ten days, which help smooth out short-term fluctuations, the momentum appears to still lean bearish. Furthermore, various moving average bands have recently taken on a bearish trend, which doesn’t change the current outlook.
This suggests that sellers still hold the reins, and breaking below Monday’s low of $2.69 could trigger a sharper decline for XRP.
A bullish undercurrent?
The MACD histograms, which gauge momentum using 12- and 26-week exponential moving averages, have remained consistently negative since late July. However, XRP hasn’t plummeted dramatically and continues to fluctuate between $2.70 and $3.00.
This stability hints at the possibility that a bullish crossover from the MACD may signal the beginning of a significant rally, similar to what Bitcoin experienced when it dipped below $60,000 last September.
- Support: $2.69 (Monday Low), $2.65 (Swing high starting May), $2.48 (200-day SMA)
- Resistance: $2.84 (Monday high), $3.38 (August high), $3.65 (July High).
Bitcoin takes out key trendlines
Bitcoin has surged past a descending trendline that indicated pullbacks from its record highs above $124,000. Nonetheless, the outlook remains bearish for the short term as prices have dipped below critical resistance levels, including one-sided clouds and key moving averages from the last month. Additionally, the bearish trend is evident on the RSIs of the monthly chart.
- Support: $107,286 (Monday Low), $100,000, $98,330 (Swing low since June 22nd).
- Resistance: $110,756 (Izakaya Cloud), $111,728 (100-day SMA), $115,780 (50-day SMA).
