XRP: Why these price levels could be vital for a potential breakout

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

With the 38.2% and the 23.6% Fibonacci levels depriving the bulls of their buying vigor, XRP flipped its 11-week trendline support (yellow, dashed) to immediate resistance.

As the sluggish phase continues, the altcoin is testing the $0.38-baseline that the buyers have held for over a year. A close below the immediate demand zone (green) would provide shorting opportunities.

However, if the buyers recoup snap the $0.42-resistance, XRP could see a rebound above its Point of Control (POC, red). At press time, XRP traded at $0.3928.

Source: TradingView, XRP/USDT

While the extended bearish rally finally halted, XRP is entering a tighter phase near its POC. For over two months,  buyers have not had an opportunity to spur a streak of green candles and provoke a revival phase.

After poking its 15-month low at the $0.33-level on 12 May, XRP has been hovering near its demand zone. A continued compression between the trendline resistance and demand zone could confirm a descending triangle on the Daily timeframe.

Any close below the immediate baseline would give sellers enough thrust to open a door toward the $0.33-zone.

However, the distance between the 20 EMA (red) was over-extended from its 200 EMA (green). After this record-high gap, the buyers would be keen to step in and trigger a rally. A close beyond the $0.418-level could expose XRP to an upside toward the 23.6% Fibonacci resistance.

Source: TradingView, XRP/USDT

The Relative Strength Index (RSI) was in compression near its oversold region. The bulls still needed to topple the 41-resistance to enable a robust recovery in the coming times.

Also, the OBV