The chart of XRP/USDT on the 4-hour timeframe reveals a classic example of a parabolic rise within a well-defined ascending channel, which has recently been broken to the downside. The price rallied strongly, forming higher highs and higher lows, supported consistently by the curved trajectory of a long-term trendline and multiple short-term moving averages. However, the steepness of the ascent, culminating in a local high around 3.66, appears to have exhausted momentum.
Following the peak, a sharp correction has taken place, breaching both the dynamic support and the lower boundary of the rising wedge structure. This breakdown signals a potential shift in market sentiment. The recent rebound seems more like a temporary relief or dead-cat bounce rather than a decisive reversal.
From a broader perspective, this move appears to be part of a larger cyclical retracement—where price may revisit and test previous high levels (now flipped into potential support) around the 2.62 and 2.33 zones. These levels are historically significant and could serve as key areas for demand reaccumulation in a longer-term bullish continuation, assuming macro conditions remain favorable.
In essence, while the immediate trend shows weakness, the larger structure still supports a healthy market correction. A return to prior resistance-turned-support would not only be expected but potentially constructive for sustainable future growth.
Following the peak, a sharp correction has taken place, breaching both the dynamic support and the lower boundary of the rising wedge structure. This breakdown signals a potential shift in market sentiment. The recent rebound seems more like a temporary relief or dead-cat bounce rather than a decisive reversal.
From a broader perspective, this move appears to be part of a larger cyclical retracement—where price may revisit and test previous high levels (now flipped into potential support) around the 2.62 and 2.33 zones. These levels are historically significant and could serve as key areas for demand reaccumulation in a longer-term bullish continuation, assuming macro conditions remain favorable.
In essence, while the immediate trend shows weakness, the larger structure still supports a healthy market correction. A return to prior resistance-turned-support would not only be expected but potentially constructive for sustainable future growth.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.