XRP price is at an important technical juncture following a strong rally that gave way to a retracement. The $1.40 price level will determine whether a sustainable recovery or another round of correction will happen. However, technical signals remain positive for a possible rally.
At the time of writing, XRP is trading at $1.38, with a 24-hour trading volume of $5.75 billion and a market capitalization of $86.95 billion. The token has declined 6.24% over the last 24 hours.
This new development has seen the price of XRP get back closer to the $1.40 range, a region that could be crucial in deciding the future direction of the coin.
XRP faces a key test after its recent pullback
On August 26, crypto analyst ChartNerd expressed his thoughts on how the $1.70 price point has set up XRP to undergo some testing. Based on his analysis, the bulls will gain some ground when daily candles close above $1.40, whereas weekly candles closing above the 50 EMA at $1.54 will be further validation.
The $1.40 XRP price will be significant as it recovers from its latest rally and subsequent retracement. Holding $1.36 should allow for further recovery, but failing that will set the stage for $1.28. Key resistance prices are seen at $1.45 and $1.54.
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Technical Indicators Still Support the Bulls
Despite the latest downtrend, the daily technical pattern of XRP has been constructive. XRP is currently trading at $1.38, which is above the midline of the Bollinger Bands of $1.16192, while the top and bottom bands are at $1.56667 and $0.75716, respectively. Investors buying XRP close to the upper band have shown that the asset has been very strong.
MACD is yet another good sign for XRP. The MACD line is at 0.10247, while the signal line is at 0.06085. The histogram is still in positive territory at 0.04163.
This means that the uptrend’s strength has not been lost despite the correction. But technical indicators are quick to change, especially after a sharp move in the price, so XRP price must hold crucial support zones to keep its present structure intact.
What Happens Next for XRP Price?
More daily closes in the upcoming days may help determine the direction in which XRP price will proceed.
In the bulls’ case, XRP price must defend the $1.40 support level, regain $1.45, and finally make an attempt to push above $1.50-$1.54 resistance levels. Above $1.54, bulls would see a strengthened recovery pattern, leading to the $1.70 mark once again.
As for bears, multiple failures at $1.40 combined with a breakout of $1.36 would be evidence that sellers are yet to digest the strength gained during the last bull run.
The $1.40 level becomes the immediate area to watch for now, while $1.54 and $1.70 become the next major levels to test upwards.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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