Charted: Ripple (XRP) Could Rally Significantly If It Clears This Key Resistance

Aayush Jindal

1 year ago

2 mins read

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Ripple formed a support base above $1.16 and it is now rising against the US Dollar. XRP price could start a strong increase if it clears the main $1.50 resistance zone.

Ripple is showing positive signs above the $1.20 and $1.30 resistance levels against the US dollar.
The price is now trading well above $1.3500 and the 100 simple moving average (4-hours).
There is a major contracting triangle forming with resistance near $1.50 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
The pair is likely to start a fresh rally if it clears the $1.500 resistance zone.

Ripple’s XRP Price Eyes Fresh Rally

This past week, ripple’s XRP started a downside correction from well above $1.65. XRP extended its decline below the key $1.50 support, similar to bitcoin and ethereum.

It opened the doors for a nasty spike below the $1.20 support. However, the bulls were active above the $1.15 level. A low is formed near $1.162 and the price is now rising. It broke the $1.25 and $1.30 resistance levels.

There was a break above the 23.6% Fib retracement level of the downward move from the $1.97 high to $1.162 swing low. It is now trading well above $1.3500 and the 100 simple moving average (4-hours). There is also a major contracting triangle forming with resistance near $1.50 on the 4-hours chart of the XRP/USD pair.

Source: XRPUSD on TradingView.com

The triangle resistance near $1.50 holds the key. The next hurdle could be $1.56. It is near the 50% Fib retracement level of the downward move from the $1.97 high to $1.162 swing low.

A successful break above the triangle resistance and then $1.56 could set the pace for a fresh surge. In this case, the price could even rally above the $1.65 and $1.70 levels.

Dips Limited in XRP?

If ripple fails to clear the $1.5000 resistance or $1.560, it could correct further lower. An initial support on the downside is near the $1.3200 level and the 100 SMA.

The next major support is near the $1.28 level and the triangle lower trend line. Any more losses might call for a drop towards the $1.15 support zone in the coming sessions.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is slowly gaining pace in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.

Major Support Levels – $1.32, $1.28 and $1.15.

Major Resistance Levels – $1.50, $1.56 and $1.65.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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