We take a look at the XRP price for the week of June 7, 2021. Aside from fundamentals, we rely heavily on technical analysis to assess overall sentiment. This is achieved by identifying key support and resistance levels that traders and investors will be watching in the short term. As Visionary Financial outlined in the previous XRP analysis ( May 31, 2021 ), it was important for XRP to hold $0.85 support in the short term. We have seen that come to fruition as bulls want to take the lead.
At the time of this report, XRP is currently trading at $0.89821. The 7th largest cryptocurrency by market cap has rallied ~ 6.8% over the last 24 hours. XRP has trailed Bitcoin over the last 24 hours ( ~ 13% ) but has capitalized on the bullish sentiment. Despite the recent rally, XRP is attempting to stabilize from a ~ 12% drawdown over the last week and a ~ 35% sell-off during the last month. As Visionary Financial outlined in recent XRP analysis, it was important for XRP to maintain strong support at $0.85. With this holding true thus far, we believe the recent sell-off was healthy price action. What are the key support and resistance levels we will be watching in the short term to gauge sentiment?
XRP Technical Analysis
Based on recent price action, key support and resistance levels have seen little change since our previous analysis on May 31. We still believe that $0.85 is a very important support level in the short term. If XRP continues to hold above this level, we believe that bulls will continue to deploy new risk capital at these levels. If XRP suddenly rejected $0.85 support, we could see a pretty sharp sell-off for various technical reasons.
Based on current price action, XRP continues to target $1.07 resistance to the upside. That denotes ~ 19% potential upside from current levels. If $1.07 resistance can be slashed, we expect a strong push into the mid $1.20s. We should see that initial push to $1.07 resistance once XRP can hover above the 10-day moving average, which is outlined in the chart above.
We also continue to monitor the rate of change, which is the indicator at the bottom of the chart. As discussed multiple times before, ROC is a great indicator of overall momentum. XRP is flirting with 0.00 levels right now ( neutral ). Once it gets above 0.00, we should see increased volatility and positive momentum to $1 and beyond.
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