XRP‘s ongoing upside retracement risks exhaustion as its price tests a resistance level with a history of triggering a 65% price crash.
XRP price rebounds 30%
XRP’s price gained nearly 30%, rising to $0.36 on June 24, four days after rebounding from $0.28, its lowest level since January 2021.
The token’s retracement rally could extend to $0.41 next, according to its “cup-and-handle” pattern shown in the chart below.
Interestingly, the indicator’s profit target is the same as XRP’s 50-day exponential moving average (50-day EMA; the red wave).
Major resistance hurdle
The cup-and-handle bullish reversal setup tends to meet its profit target at a 61% success rate, according to veteran analyst Thomas Bulkowski.
But it appears XRP’s case falls in the 39% failure spectrum because of a conflicting technical signal presented by its 200-4H exponential moving average (EMA).
XRP’s 200-4H EMA (the blue wave in the chart below) has previously served as a strong distribution signal. Notably, in April 2022, the token attempted to break above the said wave resistance multiple times, only to face rejections on each try; it fell 65% to $0.28 later.
The ongoing cup-and-handle breakout has stalled midway after XRP retested the 200-4H EMA as resistance on June 23. Now, the token awaits further bias confirmation while risking a price decline similar to what transpired after April.
XRP’s overbought relative strength index (RSI), now above 70, also raises the possibility of an interim price correction.
XRP LTF breakdown underway
The downside scenario…