XRP is changing hands around $1.35, down about 6% over the past week after slipping below a support level chart that analysts had been watching closely since late August.
Trader ChartNerd says the token’s second failed weekly close above its 50-week EMA gives way to a deeper decline to $1.27, or lower, before the rally that took XRP to $1.70 can resume.
Bulls lose grip on $1.36 floor
ChartNerd has been follow up XRP’s four-hour structure for weeks, monitoring a range that formed below resistance at $1.47 and above support at $1.36. This floor has now been swept twice. According to the analyst, the price fell from $1.43 and printed another lower high under a downtrend signal sitting at $1.39.
Zooming out, the image goes back to August 22, the day XRP hit a multi-month high of $1.70, as CryptoPotato reported. The rally follows a broader market move sparked by Bitcoin’s jump from below $65,000 to $80,000, and sent XRP soaring 70% in three days after a rough start to the month that briefly dragged it below $1.00. It ended August at just under $1.40, still representing a 30% monthly gain despite the pullback.
ChartNerd flagged the risk of a retracement the day after this spike, warning that a weekly close below the 50 EMA “would be a harbinger of a larger retracement.”
This is exactly what followed: two consecutive weekly closes below average and a decline according to the analyst. attached about 22% from the top. The next support in this scenario is the weekly 20 EMA, which now stands at $1.27.
No recovery cases until $1.50 is recovered
ChartNerd’s resistance scale above the current price ranges from $1.40 to $1.43, then $1.47, then $1.65, $1.82, and $2.40. On the downside, the levels being watched are $1.30, $1.27, $1.21, and $0.85, with the latter tied to an area the analyst has been flagging for accumulation since June.
The wider case for a background rests on a golden cross which has not yet been formed. XRP’s EMAs are rolling, with price stuck below the 50-week average and above the 20-week average. Until both are recovered and sustained, ChartNerd is unwilling to set a bottom, comparing the current trend to the squeeze that preceded the August breakout.
Spot XRP ETFs rallied more than $110 million again last week, their biggest inflow since December, keeping some traders open to a quicker recovery than the charts alone suggest.
September has its own catalysts, including a vote on the CLARITY Act in the Senate around September 15 and a shareholder vote on Evernorth’s planned listing on Nasdaq. But none of this changes the technical picture described by ChartNerd: XRP is boxed below resistance, and until that changes, another decline to $1.27 or beyond remains on the table.
XRP’s Next Move Comes Down to These Key Price Levels: The post Analyst appeared first on CryptoPotato.