Attn traders: Is it time to take profits on XRP?

TLDR

• XRP is now facing a formidable challenge at the $0.62 horizontal resistance.
• XRP is overbought on the daily chart, but a bearish divergence is possible.
• Positive funding rates and high open interest suggest a somewhat unhealthy market.
• Our confidence in XRP is low. So, we are cautioning against fresh Long/Buy positions at the current price point. 

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

Technical analysis

XRP did fantastically to reclaim the $0.54 horizontal resistance and flip it into support. This enabled XRP to move higher and then reclaim its macro uptrend. XRP, however, is now at a horizontal resistance of $0.62, which could act as a strong resistance area. If XRP can get above it (although doubtful), its target to the upside would be $0.69. 

If XRP does have a more meaningful pullback, we would expect the $0.54 horizontal level to hold as new support.  

XRP 1D

RSI and funding rates

XRP is now well into overbought territory on the daily timeframe. However, we have seen other coins do this and then move higher to create a bearish divergence. This suggests that XRP can see a pullback in the medium term, but it could continue higher in the short term.  

Regarding funding rates, it’s very positive, and the open interest is also very high. This indicates a somewhat unhealthy market, and we wouldn’t look to take out fresh longs/buys on this. 

Cryptonary’s take

Our conviction on XRP isn’t super high. Enough signals tell us not to ape into fresh longs/buys at the current price point. The smarter move will be getting ready to take profit if XRP does have another leg higher. 

Action

• Our overall conviction for XRP is low.
• Even though XRP could have another leg higher, its odds of doing so are not high.