Riding the XRP bull? Watch these key levels

TLDR

• XRP has maintained relative strength despite BTC's minor shakeout.
• Key levels for XRP include a $0.62 horizontal resistance and a $0.54 to $0.55 horizontal support.
• A bullish pennant formation suggests potential upward movement, dependent on BTC's stability.
• We are cautiously optimistic about XRP's short-term prospects, but we recommend you continue monitoring BTC's influence.

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 still looks positive to us. Of course, it could have a shakeout lower if BTC breaks down further, but XRP standing strong at the $0.60 level is positive. 

For more upside, XRP will need to break above the $0.62 horizontal resistance. To the downside, the $0.54 to $0.55 level is the key horizontal support that would need to hold. 

XRP is forming a bullish pennant, which should have a bias to break to the upside. Again, that’ll likely depend on whether BTC holds up or we don’t see a more major breakdown. 

XRP 1D

RSI and funding rates

The RSI is now into overbought territory for the first time, at 73. However, this isn’t something that should put us off, particularly as we’ve seen other coins go heavily into overbought territory and still achieve more meaningful runs. For now, there are no bearish divergences. If BTC holds up, XRP can have a go at the $0.62 horizontal resistance, and if it breaks above, we could see a move into $0.69.  

The funding rate was very positive. It has come down a bit but remains in positive territory. The open interest is now at a high that we haven’t seen in several months. We should be somewhat wary of this. 

Cryptonary’s take

Setup-wise, we like XRP here for the very short term. However, we’re wary because it’s hard to predict BTC’s next move, and if it goes lower, alts will likely follow. XRP also has a resistance just above the current price at $0.62, along with a relatively overheated derivatives market. So, despite us liking the setup TA-wise, we would be cautious about this and the market in general.  

Action

• We’re steering clear of XRP here in the short term. Let BTC decide what it wants to do, and we can re-analyse from there.