Key Support level: $1
Key Resistance level: $1.2
The XRP price action is caught between support and resistance or $1 and $1.2. The pressure is building up, and XRP appears to be ready to explore higher levels. For that to happen, though, price has to break above $1.2 with confidence and increasing volume.
The price has also formed a parabola (in yellow) stretching back to March 2020. As long as it doesn’t break below it, then the bias remains bullish on XRP.
Chart by TradingView
Volume: The volume has remained flat for the past two weeks, showing some indecision on the way forward. Nevertheless, there are some early signs that bulls have the upper hand, as shown by the price making higher lows on the daily timeframe.
RSI: The RSI is steadily moving higher, in line with the price action. There are no signs to point towards a reversal in this trend.
MACD: The moving averages are about to complete a bullish cross on the 3-day timeframe. The histogram is a day away from crossing on the positive side. This shows that XRP could go higher. Nevertheless, it is important to watch the price action around the $1.2 resistance.
Chart by TradingView
The current bias is bullish. However, the price has to break the $1.2 resistance for the bulls to gain more confidence. There are some early signs this may be the case soon, but it is always best to wait for a confirmation (a breakout).
A break of the resistance can lead to a rally, while falling under $1 would turn the bias bearish. As long as the yellow parabola remains intact, there are sufficient reasons to maintain a bullish bias (see first image).
XRP is on a clear path to test the resistance at $1.2. The question is if it will be able to break above it. If that happens, then the next major resistance for XRP will be at $1.6. On the other hand, falling below the support at $1 could quickly push XRP to $0.85, which is the next key support level.
The above analysis was written by DU09.
Ethereum co-founder Vitalik Buterin has warned crypto executives to switch focus to collective security and…
Binance founder Changpeng Zhao warned in a recent interview with CoinDesk that traditional banks may…
Ripple CEO Bradley Garlinghouse is pushing back against the idea that the company’s growing RLUSD…
According to a recent report from a local Chinese publication, Chinese regulators have moved against…
Wall Street staged a sharp recovery following the U.S. midterm elections, reversing earlier losses as…
ADA continues to gain popularity in tokenized real-world assets and institutional blockchain adoption. Petrobras’ move…