XRP Falls Back Below $0.70 as Bulls Struggle to Maintain Momentum

Ripple's XRP is trading sideways after a strong rally at the start of this week. At the time of writing, XRP is trading at $0.6942, up around 30% year-to-date but 8.5% down from the monthly highs.

XRP's recent price action reflects a mix of bullish and bearish signals across different timeframes. On the weekly chart, XRP presents bullish price signals, with the coin maintaining its position well above the 50-day and 200-day Exponential Moving Averages (EMAs). 

The potential for a move towards the $0.7467 resistance level remains intact, provided XRP sustains its bullish momentum. Conversely, a drop below the $0.6609 support level could invite further downside pressure.

Looking at the daily chart, XRP has established a trading range between $0.65 on the downside and $0.74 on the topside. The bulls have defended the $0.65 level multiple times over the past two weeks, suggesting solid demand is coming in at that support area. However, XRP has also repeatedly failed to break and close above the $0.74 resistance over the same period.

The 50-day and 200-day exponential moving averages (EMAs) are sloping up, indicating the overall trend remains bullish. XRP is currently trading comfortably above both these key EMAs, which traders often use as support/resistance levels. The 50-day EMA is coming in at $0.66 while the 200-day is at $0.41.

The 14-day Relative Strength Index (RSI), a momentum indicator, is currently reading 62.9. This shows that XRP is in bullish momentum territory but not yet overbought. There is still room for the RSI to move higher before hitting overbought levels around 70, which could allow XRP's price to climb further.

On the upside, if the bulls can gather enough strength to push XRP above the $0.74 resistance, the next key target lies at $0.80, which is the 61.8% Fibonacci retracement level of the crypto's decline from the 2022 highs. Above $0.80, additional resistance is at $0.93 and $1.00.

On the downside, the key level to watch is the $0.65 support. A daily close below this could open the door for a slide towards the $0.60 psychological level. The 200-day EMA at $0.41 would be the next major support if selling accelerates.

The 4-hour chart shows XRP is currently holding above a rising trendline from the March lows, another positive sign. However, the 4-hour RSI of 53 suggests momentum is starting to wane after repeatedly failing to break above 70 over the past month.

XRP's medium-term technical picture remains constructive while the bulls remain in control above $0.65 support. A break and a sustained move above $0.74 resistance are needed to continue the bullish momentum and open the path to retest the 52-week highs near $0.93. On the flip side, a close below $0.65 would be a bearish development that could see XRP dip back towards $0.60 initially.

The technical indicators suggest that XRP's price remains in a bullish consolidation phase, with the potential for a continuation of the uptrend if it can break above the $0.7440 resistance level.

Traders should keep a close eye on the $0.6370 support level, as a daily candlestick close below this level could invalidate the bullish thesis and lead to a potential correction toward the $0.60 psychological support.