For over a year, buyers and sellers of XRP coin cannot figure out one important issue — who owns a price zone of USD 0.44-0.46. Once in April 2018, this price zone stopped a total fall of prices with USD 3 for 3 months. Then in the period from September to November 2018, buyers after a big outbreak of volume tried to keep the price zone for growth continuation. Now the situation is repeated and buyers are trying to break through this price zone for the second time in a month:
On the chart, we see that a year ago and nowadays there is interest in this price zone, because when the price approaches it – volumes immediately increases. This is the first critical point and breaking through this point will be a signal to continue a good trend for buyers. We also see that from August 2018, buyers arranged support, which we marked with a blue trend line, near which is also a price zone of USD 0.3-0.33, in which the price was traded within 5 months. This is the second critical point for us after it breaks through, sellers will surely continue their trend and update the low.
Sellers have secured USD 0.44-0.46, but don’t continue to push pressure on the price and allow buyers to think about the continuation of growth. At 4-hour timeframe, we see two powerful red candles, after which the consolidation began and the possibility of a blue price zone test appeared. However, this test may be necessary to confirm the weakness of buyers:
This week, the marginal buyers’ positions revamped the historical high, but failed to keep and the second-day positions are actively closed:
Sellers’ marginal positions continue to close from December 2018:
Today the month candle is closed and it looks quite prospective for buyers. At least new breakeven attempts of USD 0.44-0.46 should be available in June. In any case, before global growth, sellers should check buyers for durability and in our opinion, to promise USD 0.3-0.33. And now sellers are protected. Therefore, the probability of continuing consolidation between the two critical price zones is very high and next week we will check if there were any prerequisites for changing our mind.
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About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market.
Image Courtesy: TradingView