Charted: Ripple (XRP) Signaling Bullish Breakout, Why It Could Retest $0.35

Ripple is holding gains above $0.2800 against the US Dollar. XRP price is likely to accelerate higher towards $0.3500 once it clears the $0.3100 resistance zone.

  • Ripple is showing a few positive signs above $0.2800 and $0.2680 against the US dollar.
  • The price is facing a major hurdle at $0.3100, but it is above the 100 simple moving average (4-hours).
  • There is a key contracting triangle forming with resistance near $0.3000 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
  • The pair is likely to accelerate higher towards $0.3500 once it clears $0.3100.

Ripple’s XRP Price is Showing Positive Signs

There was a sharp increase in ripple’s XRP price after it broke the $0.3000 resistance. The price climbed above the $0.3100 and $0.3200 resistance levels, but it struggled near the $0.3300 level.

A high was formed near $0.3302 before the price corrected lower. It broke the $0.3100 support and even spiked below $0.3000. However, the bulls defended the $0.2800 zone and the 100 simple moving average (4-hours). A low is formed near $0.2811 and the price is currently consolidating in a range.

It recovered above the 23.6% Fib retracement level of the downward move from the $0.3302 high to $0.2811 low. There is a key contracting triangle forming with resistance near $0.3000 on the 4-hours chart of the XRP/USD pair.

Ripple (XRP)

Source: XRPUSD on TradingView.com

The triangle resistance is close to the 50% Fib retracement level of the downward move from the $0.3302 high to $0.2811 low. A successful break above the triangle resistance may possibly call for a break above the $0.3100 resistance.

A successful close above $0.3000 and $0.3100 could open the doors for a steady increase. The next hurdle could be $0.3300, above which the price could test $0.3500.

Fresh Dip in XRP?

If ripple fails to break the $0.3000 and $0.3100 resistance levels, it could correct lower. The first major support is near the $0.2880 zone and the 100 SMA (H4).

A downside break below the triangle trend line, $0.2850, and the 100 SMA (H4) could accelerate losses. In the stated case, the price could decline sharply towards the $0.2600 support zone in the near term.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is showing positive signs in the bullish zone.

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

Major Support Levels – $0.2880, $0.2850 and $0.2600.

Major Resistance Levels – $0.3000, $0.3100 and $0.3500.

Publication date: 
01/21/2021 - 09:18
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.