- XRP price hovers back above a recently breached trendline.
- The Relative Strength Index shows Ripple price back above supportive buyers’ territory.
- A breach above $0.36 could induce a rally towards $0.39 in the short term.
XRP price continues to display choppy price action. A 5-wave impulse towards $0.39 could resolve the confusion.
XRP price finding support
XRP price could set up a 15% countertrend rally targeting $0.39. At the time of writing, the XRP price has regained momentum following the recent CPI-induced selloff earlier in the week. The bulls have reconquered the 8-day exponential moving average and are likely to test the 21-day simple moving average at $0.34 in the coming hours.
XRP price currently auctions at $0.339 as the first signs of bullish retaliation occur near a recently breached descending trendline. The Relative Strength Index confounds the idea that an additional bounce could occur as the recent decline’s swing low at $0.331 still hovers above supportive territory.
If the bulls can produce a closing candle above $0.36, an additional hike towards $0.39 could occur. Such a move would result in a 15% rise from the current XRP price.
Traders should keep in mind that this thesis is a short-term countertrend setup, aiming to trade the prospective C wave up. This thesis does not expect the XRP price to close above $0.41. An additional decline is still on the table targeting $0.24 in the long term. XRP price must definitively close above $0.41 to consider an alternative count.