XRP is on the brink of recovery, with still one more crucial resistance barrier to overcome
Crypto News

XRP is on the brink of recovery, with still one more crucial resistance barrier to overcome

  • Ripple’s XRP will jump to $0.82 once it clears a sloping trendline at $0.6.
  • A move below $0.5 will invalidate the bullish scenario.

Ripple’s XRP is changing hands at $0.57 at the time of writing, having gained over 10% on a day-to-day basis. However, despite the recovery, it is still 9% down on a weekly basis. The coin hit the multi-year high at $0.7824 on November 24 before speculative accounts started cashing out their profits and pushed the third-largest digital asset price below $0.6.  

XRP market value has settled at $25 billion, while its average daily trading volume exceeds $11 billion.  

XRP upside momentum is capped by $4

On the 4-hour chart, XRP’s recovery is capped by $0.6 created by a sloping trend line of the symmetrical triangle pattern.  This barrier is also reinforced by a combination of the 50 and the 100 EMA in the same timeframe. Only a sustainable move above this significant technical hurdle will improve the short-term technical picture and allow for an extended recovery with the initial target at the psychological $0.7 followed by $0.82, representing a 38% increase from the breakout level. 

XRP's 4-hour chart

XRP 4-hour chart

On the other hand, a rejection from the critical resistance will bring $0.5 into focus. This psychological support coincides with the December 9 low and the lower line of the triangle. Once it is broken, the downside momentum will gain traction and bring XRP to the next local barrier at $0.45 created by 4-hour 200 EMA. Meanwhile, the ultimate bearish target comes at $0.31, which is a measured move from the triangle formation.

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.