XRP is making its third straight red candle after rising to $ 1.23. In the short term, the focus will be between the daily 20-SMA, the 200-SMA and the 50% Fib level.

A rebound from this confluence could spark a new rally for XRP as the broader market moves into risk appetite. At the time of writing, XRP is trading at $ 1.11, down 1.2% over the past 24 hours.

Source: TradingView

The past three days have resulted in a nearly 14% loss in the XRP market as the altcoin approaches the supply zone of $ 1.22. In fact, if the bulls fail to provide support at the 38.2% Fib level, further losses are expected.

However, a combination of 20-SMA (red) and 200-SMA (green) above the 50% Fib level could allow buyers to turn back. Additionally, a rally is possible if XRP holds above this confluence as capital outflows are observed in the broader market.

On the flip side, a closing price below the 61.8% Fib Retracement (Gold) level could mean problems for XRP. It will be hard hit, sliding towards the $ 0.78 and $ 0.75 levels in early August.

XRP indicators save bullish positions that close upon their immediate support. The RSI continues to decline towards the midline from 62. If the RSI now finds support around the midline, XRP can maintain its uptrend and move up.

Similarly, the + DI of the DMI Directional Movement Index approached the -DI, ​​but the upward trend in the market continues. Eventually, the MACD will oscillate around the center line and also offers a bullish neutral view.

To sum up, XRP could go back above the $ 1.2 mark, provided the price holds up above several key areas. The 20-SMA and 200-SMA will be ready to provide support should downside pressures escalate in the short term. However, that bullish outlook will be undone if bears can push the price below the Fib level of 61.8%.

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According to Ambcrypto

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