XRP spiked from $ 0.51 on July 21 to $ 0.78, its highest level. This represents an increase of more than 50% in about 12 days. This strong rally indicates a possible change in market sentiment.
The rumor from an anonymous source within Amazon that the company was planning to accept payments in Bitcoin by the end of 2021, gave a boost to BTC. In turn, other cryptocurrencies such as Ripple gained strong bullish momentum.
The short positions were liquidated on July 21 after this news, although it was just a rumor. The market is vulnerable and at the same time it can be manipulated in this way. As a result, XRP jumped as high as highs of $ 0.78.
Although institutional adoption of digital assets is on the rise, some still view cryptocurrencies only as a speculative asset. The volatility, fear, and euphoria inherent in this market is very attractive to traders who want to win quickly and take profits.
The bullish sentiment that currently dominates the market is likely to prevail. Therefore, we should wait for a correction to support levels around the 200 EMA for a new bullish wave.
According to the 4-hour chart, XRP is trading below the 21 SMA and below the strong 4/8 Murray resistance located at $ 0.7812. This is a signs that the crypto is overbought with a probability of a correction in the short term.
The key point is to wait for a good buying opportunity in the $ 0.63 area. The 200 EMA and the 2/8 Murray support are located at $ 0.5859.
Both levels could give us an idea to buy with targets at the $ 0.70 and $ 0.78 resistance zone. The eagle indicator is showing a bearish signal for the next few days.
Support and Resistance Levels for August 05 - 06, 2021
Resistance (3) 0.7905
Resistance (2) 0.7630
Resistance (1) 0.7481
Support (1) 0.7057
Support (2) 0.6782
Support (3) 0.6465The material has been provided by InstaForex Company - www.instaforex.com