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Ripple (XRP)

Technicals Point Towards Ripple (XRP) Rally To $0.20 Despite Some Roadblocks

Avatar Aayush Jindal 2 months ago

Ripple is trading in a positive zone above the $0.1750 region against the US Dollar. XRP price is likely to accelerate gains in the near term and it could test $0.1880 and $0.2000.

  • Ripple price is slowly gaining bullish momentum above $0.1720 and $0.1750 against the US dollar.
  • There was a sharp spike recently towards $0.1865 before the price corrected lower.
  • There is a major bullish trend line forming with support near $0.1770 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair is likely to grind higher towards $0.1880 as long as it is above $0.1720.

Ripple Price Could Gain Traction

Recently, we saw a sharp rise in bitcoin and Ethereum above $6,800 and $145 respectively. Ripple also rallied above the $0.1800 resistance area and settled nicely above the 100 hourly simple moving average.

However, the upward move was limited and the price failed to test the $0.1880 resistance area. A new weekly high is formed near $0.1866 and the price is currently correcting lower.

There was a break below the $0.1800 level. Besides, ripple spiked below the 50% Fib retracement level of the recent rally from the $0.1680 low to $0.1866 high. The price tested the $0.1750 support area (the previous resistance), where the bulls emerged.

The bulls also protected the 61.8% Fib retracement level of the recent rally from the $0.1680 low to $0.1866 high. There is also a major bullish trend line forming with support near $0.1770 on the hourly chart of the XRP/USD pair.

Ripple Price

Ripple Price

The pair is currently rising and trading nicely above the $0.1750 level and it could continue to rise. The first resistance is near the $0.1800 level, above which the bulls are likely to gain momentum.

The next key resistance is near the $0.1880. If there is a clear break above $0.1880, there are high chances of a sharp move towards the $0.2000 resistance.

Downside Correction?

If ripple fails continue above the $0.1800 resistance area, it could correct lower. An initial support on the downside is near the $0.1750 level and the trend line.

If there are more downside, the price is likely to test the $0.1720 support level and the 100 hourly simple moving average. Any further losses may perhaps lead the price back towards the $0.1620 support.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is about to move back into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well above the 50 level.

Major Support Levels – $0.1750, $0.1720 and $0.1620.

Major Resistance Levels – $0.1800, $0.1880 and $0.2000.

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Risk disclaimer: 76.4% of retail CFD accounts lose money.

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial...

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