XRP Breaks Back Above $0.34 After 12% 3-Day Price Surge – Where Is the Price Heading?

Ripple finally managed to climb back above the $0.34 level in the previous trading session, after rising 2.48% over the past 24 hours. Furthermore, the market has surged by a total of over 12% throughout the past 3 trading days, which is great news for the Ripple community.

This may turn into an exciting time for XRP holders due to the fact that XRP has not really enjoyed too much of a price hike over the past 30 trading days, unlike the majority of the crypto market. This means that Ripple still has a lot of catching up to do;

Image Source: https://coincheckup.com/

Ripple has only experienced a small 7% price increase over the past 30 days, which is commendable. However, compared to Ethereum’s 22% and Bitcoin’s 30% over the same period, Ripple is clearly lagging behind in the recent price surges.

Ripple remains ranked in 3rd position in the market cap rankings, as it currently holds a $14.20 billion market cap value. However, due to Ethereum’s recent growth, the #2 position in the rankings continues to move further away from Ripple’s reach.

Although unconfirmed, the Weiss rating agency has recently suggested that XRP may soon be integrated with Skype, which would expose XRP to its 300 million users. The integration will allow users to tip and send microtransactions to each other through the Microsoft application.

Ripple Price Analysis



What Has Been Going On?

Taking a look at the daily chart above, we can clearly see that the year has been tough for Ripple. The market started the year at $0.3940 and has been falling ever since. We can also see that Ripple has been trading within the confines of an ascending price channel since February 2019. The market broke below the channel toward the end of March 2019 and during the past trading week, but XRP/USD managed to find support at a rising support line parallel to the price channel.

The recent price surge has now allowed XRP/USD to climb above the $0.34 level and back into the previous ascending price channel. The price surge has also allowed Ripple to break back above the 100-day moving average, a potent bullish signal.

What Is the Short-Term Trend?

The current short-term trend is neutral. If the market can make fresh highs (and closes) above $0.37, we can then consider the short-term trend to be bullish. If price action falls beneath the $0.31 support level, then the short-term trend will be rendered as bearish.

Where Are Prices Heading Toward?

If the buying continues and XRP/USD climbs away from the $0.34 level, we can expect immediate resistance above to be located at $0.35, followed with more resistance at $0.3620.

Above $0.3620, higher resistance can then be expected at $0.3815, followed with resistance at the upper boundary of the price channel. If the bullish pressure can cause Ripple to break above the price channel, resistance above is then to be expected at the bearish .382 Fibonacci Retracement level (drawn in red) priced at $0.3943. This bearish Fibonacci Retracement level is measured from the November 2018 high to the December 2018 low.

If the bulls continue above $0.40, higher resistance then lies at the medium-term 1.272 Fibonacci Extension level (drawn in purple) priced at $0.4178.

What If the Sellers Step Back In?

Alternatively, if the sellers regroup and start to push the market lower, we can expect immediate support toward the downside to be located at the 100-day moving average and the lower boundary of the ascending price channel.

Below the channel, support lies at $0.3257, $0.32, and then at the parallel rising trend line.

What Are the Technical Indicators Showing?

Price action breaking above the 100-day moving average is a strong bullish signal. This combined with the fact that the RSI has recently risen above the 50 level, into bullish territory, provides a very promising sign for the bulls.

If the RSI can remain above the 50 level and continue to rise higher, we can expect Ripple to follow suit and rise away from the $0.34 level.

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.