Charted: Ripple (XRP) Could Rally Significantly If It Clears This Key Resistance
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.
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Aayush Jindal, Khareem Sudlow