Ripple (XRP) Price Rallies 15%: Bulls Now Aim $0.42 or Higher

• Ripple price surged higher and broke the $0.3150 and $0.3300 resistance levels against the US dollar.
• The price even broke the $0.3500 resistance and tested the $0.3750 resistance area.
• There was a break above a major contracting triangle with resistance at $0.3240 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair traded as high as $0.3778 and it may continue to grind higher towards $0.4000 or $0.4200.

Ripple price rallied significantly above $0.3500 against the US Dollar, plus recovered versus bitcoin. XRP is now well above $0.3500 and it looks set for more gains above $0.4000.

Ripple Price Analysis

After a successful close above $0.3000 and $0.3100, ripple price gained bullish momentum against the US Dollar. The XRP/USD pair rallied significantly above the $0.3500 resistance and gained more than 15%. The bulls took control after there was a close above the $0.3200 level and the 100 hourly simple moving average. Recently, bitcoin price rallied above the $7,800 and $8,000 levels, which helped altcoins such as Ethereum and ripple in moving higher.

During the rise, there was a break above a major contracting triangle with resistance at $0.3240 on the hourly chart of the XRP/USD pair. The pair surged above the key $0.3550 and $0.3600 resistance levels. There was even a spike above the $0.3750 level and the price traded as high as $0.3778. It is currently correcting lower below $0.3700. An immediate support is $0.3640 and the 23.6% Fib retracement level of the recent wave from the $0.3212 swing low to $0.3778 high.

On the downside, there are many supports above the $0.3400 and $0.3450 levels. The 50% Fib retracement level of the recent wave from the $0.3212 swing low to $0.3778 high is also near the $0.3495 level. Therefore, if there is a downside correction, the price may find bids near the $0.3550, $0.3500 or $0.3495 levels. On the upside, the $0.3750 and $0.3800 levels are initial hurdles. A successful break above $0.3800 is likely to set the pace for more upsides above the $0.4000 level in the coming sessions.

Looking at the chart, ripple price clearly started a strong upward move above the $0.3300 and $0.3500 levels. The gates are now open for a push above the main $0.4000 resistance level. If there are further upsides, the price may even test the $0.4200 barrier.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is gaining strong momentum in the bullish zone, with positive signs.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well above the 75 level, with overbought conditions.

Major Support Levels – $0.3640, $0.3550 and $0.3495.

Major Resistance Levels – $0.3750, $0.3800 and $0.4000.