- XRP price has been auctioning in oversold territory on the Relative Strength Index for several days
- A rally towards the 8-day exponential moving average at $0.47 could occur in the coming days.
- Invalidation of the shorter bullish idea is a breach below $0.42.
XRP price might see a weekend recovery rally. Key levels have been defined to determine the countertrend possibility.
XRP price could get a bid
XRP price is attempting a recovery hike after a week of endless sell-offs. On the week, XRP is down 6%, bringing the market value down 18% for October. There are, however, subtle signs in the technicals hitting that a countertrend rally could occur.
XRP price currently auctions at $0.45. The digital remittance token now hovers back above support on the Relative Strength Index after auctioning in oversold territory for several days. There is also a bullish divergence with the new monthly low at $0.45.and the previous October low at $0.45
XRP.USDT 4-Hour Chart
Considering the market conditions, XRP price could witness a big challenge for some of the newly established retail shorters. A rally toward the recently breached 8-day exponential moving average would be a reasonable target to aim for. Such a move would result in a 5% recovery rally. If the bulls can stabilize and find support, an additional roll as high as $0.50 could result in a 15% increase in price.
The countertrend thesis's invalidation is a breach below the newfound low at $0.42. If the bears manage to take the low, an additional decline targeting $0.39 liquidity levels could occur. Such a move would result in a 14% decrease from the current XRP price.
In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market. -FXStreet Team
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