Ripple (XRP) prices started to weaken again over the past two days, returning to revisit the 0.3838 level after falling from last Wednesday’s relative peak at 0.4114.
It is a slight drop in terms of extension, but it came to mention the presence of sellers in this price area, which is characterized by the presence of many resistances.
Gradual volatility pressure
On the daily candlestick chart, we can see how the market has basically stopped consolidating between 0.4179 and 0.3731 since last November 25th. In the following sessions, the prices started to compress the volatility gradually, swinging around the 0.4000 level, through a tighter orbit.
The fundamental technical data is given by the pair from very close declines which formed at 0.3200 and 0.3211 in the past 9 and 14 days.
The market’s highest relative high between the two bottoms was on November 10 at 0.4010, which is the level that forms the potential neckline of a bullish double bottom. So we’re closely watching the development of the movement.
So far, there are no clear indications of an extension of the rise, but such indications may arrive in the next few days if values are consolidated above 0.4010.
On the 30-minute bar chart, where we can analyze price action with greater definition of detail, we note first of all that the resistance has not moved, from the last days of November onwards. The first resistance was confirmed over the next 3-5 days at 0.3980/04000, while the main resistance was stopped at 0.4278/4330.
Resistance is the points that sellers focus on at this point. Thus, it will constitute several possible reboot points for the decline in the event of a new recovery, especially between tonight and next Tuesday, December 6. The main change concerns the formation of new consolidations, which now limit the potential for an expected downside breakout.
Therefore, we must update the target to bring it closer to 0.3310. The technical signal is short on tests of the new resistance, however from readings no lower than 0.3930.
Technical scenario stop will only be triggered when major resistance is breached, by closing above 0.4330 on the 30-minute chart.
While it was 21.19 CET on Friday, December 2, Ripple is trading at $0.3906, down -1.51% compared to yesterday.