- XRP is currently at a significant support level at around $0.2340.
- A defense of this crucial point would indicate a strong buy signal in the short-term.
XRP is trading at $0.2340 after the notable crash on September 2. Bulls have been able to defend the daily 200-MA several days in a row as the trading volume continues dropping and the RSI gets closer to the oversold zone.
XRP/USD daily chart
We can see how the 200-MA is acting as a healthy support level, further strengthened by the extended RSI and the Bollinger indicator’s lower line. At the same time, XRP price is getting rejected from the 100-MA, currently established at $0.2439.
XRP/USD 12-hour chart
The TD sequential sent a strong buy signal on the 12-hour chart at around $0.23. The RSI is overextended and trading volume has been dropping for the past three days. The 200-MA is the one acting as a resistance level here, established at $0.2438.
Another important factor that could contribute to the next leg up for XRP is the increase in the number of holders. According to Santiment, the number of users holding more than 1 million coins has increased significantly since July. The next target for an upward move would be $0.26, right below the 100-MA and the 50-MA.
XRP/USD 4-hour chart
Zooming in more, we can see bulls have just established a double bottom that is not fully confirmed. If XRP can close above $0.23, this pattern will further confirm the strong buy signal on the 12-hour chart.
Moving averages are notably higher than the current price on the 4-hour chart and will eventually act as resistance levels.