XRP Price Flashes Buy Signal Amid 6% Recovery Rally

The four-hour XRP price chart shows a 5.62% recovery since the May 31 swing low of $2.08. This bounce may receive a boost as the Awesome Oscillator has flashed its fifth buy signal in under two months. The last four times this indicator revealed this bullish technical formation, the token soared between 6% and 26%. Will history repeat and catalyze a 15% price rally?

AdvertisementAdvertisement ## What is the XRP Price Buy Signal?

The buy signal is a combination of a bullish crossover, as indicated by the Awesome Oscillator (AO), and a bullish crossover, as indicated by the Relative Strength Index (RSI). To be specific, the buy trigger is obtained when the AO flips above the zero mean level, while the RSI is already above the 50 mean level.

XRP Price Flashes Buy Signal Amid 6% Recovery RallyThe last four times this exact buy signal flashed, XRP price soared by roughly 14%, 13%, 26% and 6.34%, respectively. Since the buy signal has flashed for the fifth time, can investors expect another rally?

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Will XRP Buy Signal Catalyze a Bounce?

The chances of a bounce are less since the trend has changed and favors sellers. When the AO signal flashed initially on April 20, XRP price was recovering from a steep double-digit correction. Subsequent buy signals were effective due to the bullish crypto market trend. Since this outlook has changed, here are a few reasons why the buy signal may not work.

1. At the time of writing, Bitcoin is crashing, with multiple signals indicating a steep correction to $100,000 or lower. Moreover, XRP has also dropped 18% in the past 20 days, suggesting a bearish trend.
2. While the four-hour XRP price chart displays a clear bullish outlook, it may be short-lived with high chances of rejection at the $2.13 swing point.
3. Rejection at $2.13 may induce a sell-off that could breach $2.08 and catalyze a deeper correction to the key demand level at $1.97, which is not an attractive buy level.
4. Additionally, the 12-hour chart further supports this bearish regime with the RSI and AO, both below their respective mean levels of 50 and 0 on the 12-hour and 1-day charts.

XRP/USDT 12-Hour ChartAdvertisement

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Final Thoughts

If investors are looking to buy XRP for short-term speculation, they may do so at $2.08 with a tight stop loss, followed by $1.97, a key demand level. Investments at these levels are inherently risky, so market participants need to look for several signs before investing. Traders need to watch for these reactions before investing:

1. a significant spike in volume accompanied by a subsequent price reaction from the levels mentioned above.
2. Bitcoin price to create a shift in market structure favoring bulls on at least the one-hour chart, i.e., a higher low and a higher high.

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Frequently Asked Questions (FAQs)

1. What triggered the XRP price buy signal?

The buy signal was triggered by a combination of a bullish crossover on the Awesome Oscillator and a bullish crossover on the Relative Strength Index.

2. Can investors expect a rally after the buy signal?

While the buy signal has been effective in the past, the current trend favors sellers, and a rally is uncertain.

3. What are the key levels to watch for XRP price?

The key levels to watch are $2.08, $1.97, and $2.13, with a rejection at $2.13 potentially leading to a deeper correction.

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