XRP/USD technical analysis using tools such as Fibonacci retracements and extensions, as well as trendline channels.
General Analysis:
1. Fibonacci Retracements and Extensions:
Fibonacci retracement levels are seen being used to identify support/resistance zones. Important areas of interest include 0.618 ($2.24) and 0.786 ($2.34), which are support levels.
Fibonacci extensions are used to project price targets upwards, such as 1.618 ($2.93), 2.618 ($3.83), and 3.272 ($4.57).
2. Downtrend Channel:
Price was previously moving within a downtrend channel (shown by the black parallel lines). However, price appears to have broken through the channel, indicating a potential bullish breakout.
3. Support and Resistance Zones:
The red area shows a strong resistance zone around $2.67 to $2.77, which is currently being tested.
If the price manages to break through this zone, it is likely to head towards the next target around $3.00 (1.618 extension).
4. Momentum:
The last candle was bullish, indicating strong buying pressure.
Potential Scenarios:
Bullish: If the price manages to break through the resistance at $2.77, the next targets are $3.00, $3.83, and higher according to Fibonacci levels.
Bearish: If the price fails to break through the resistance and goes back down, the nearest support is at $2.34 (0.786 retracement) or $2.24 (0.618 retracement).
Be sure to consider fundamental factors and market news related to XRP that may affect the price movement.