XRP eyes $0.4 after a weekly 10% rally, but is a drop imminent? (Ripple price analysis)

After four consecutive weeks of price volatility with extremely low volatility, XRP finally started to rally and broke above the 50-day moving average. However, the uptrend stopped after reaching the 100-day moving average, and the price is now trying to cross it.

Technical Analysis

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daily chart

The 50 day moving average has been price resistance for several months. However, the bulls have recently pushed the price above this range. This resulted in a rally towards the next critical resistance level, which is located at $0.4.

Currently, the cryptocurrency is facing a major resistance area, which includes the 100-day moving average and the fixed resistance level at $0.5, which also lines up with the upper trend line of the channel.

In the event of a breakout from this area, the market should expect a rally towards the next resistance level at $0.55. However, if the price does not exceed the above level, a short-term consolidation will be the most likely outcome.

Source: TradingView

4 hour chart

During the four-hour period, the price formed an ascending price channel pattern, and after it received support from the lower trend line, it started moving upwards. However, the $0.4 resistance level has paused the rally for now, consolidating the price in the short term.

If the cryptocurrency clears the $0.4 level, the middle trend line of the channel and the $0.5 levels will be the next hurdles to cross. On the other hand, if the $0.4 level rejects the price, the lower boundary of the channel will be the next important support level.

Source: TradingView

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