Ripple's price is headed for a minor sell-off before the XRP bulls gather strength to bolster Ripple toward the upside by 11%, targeting the $1.30 level. A key technical indicator has suggested that the cross-border remittance token has recently reached its local price top, prompting a small correction.

XRP price has been hit with a top signal on October 10, given by the Momentum Reversal Indicator on the 4-hour price chart. This suggests that the Ripple price has recorded its swing high and could be headed for a slight reversal.

Minor sell-off before XRP bulls gather strength

The cross-border remittance token has fallen to a swing low of 6% following the emergence of the technical signal. Ripple XRP price was able to secure a foothold at the 20 four-hour Simple Moving Average but is now struggling to overcome the middle boundary of the ascending parallel pattern.

Although the prevailing chart pattern suggests that Ripple XRP price is headed higher, the token could fall further if it fails to slice above the $1.17 level, the middle trend line of the parallel channel. Further weakness in the Crypto market could see Ripple descend toward the 50% Fibonacci retracement level at a price of $1.13, which is also near the 20 four-hour SMA.

A spike in selling pressure would incentivize Ripple XRP to move toward the lower boundary of the governing technical pattern at a price of $1.09, near the 50 four-hour SMA. This area should act as a considerable support level for XRP price. However, if the bears continue to take charge at this point, the token would discover an additional line pattern of defense at the 38.2% Fibonacci retracement level at $1.06, coinciding with the support level given by the MRI.

If the price momentum shifts to the upside, Ripple would first need to overcome the resistance level at the middle boundary of the parallel channel at a price of $1.17. The following obstacle for XRP price is at the 61.8% Fibonacci retracement level at a price of $1.19, then at the October 10 high at $1.23. 

Bigger aspirations will target the upper boundary of the chart pattern at a price of $1.29, coinciding with the 78.6% Fibonacci retracement level, as well as the declining resistance level trend line that formed from April of this year. Cutting through this thicket could be difficult, but it is a crucial level for the long-term outlook of the XRP bulls. Breaking above the price of $1.29 could see Ripple challenge the September 7 high at $1.41 level, then the May 16 high at $1.70.

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