XRP Eyes $0.4 After 10% Weekly Surge, but is a Drop Imminent? (Ripple Price Analysis)

By akohad Jan17,2023

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After four straight weeks of price fluctuation with extremely low volatility, XRP finally initiated a rally and broke above the 50-day moving average. However, the uptrend came to a halt after reaching the 100-day moving average, and the price is now attempting to surpass it.

Technical Analysis

By Shayan

The Daily Chart

The 50-day moving average had been acting as resistance to the price for several months. However, the bulls recently pushed the price above this range. This resulted in a rally toward the next critical resistance level, which stands at $0.4.

Presently, the cryptocurrency is up against a significant resistance region, which includes the 100-day moving average and the static resistance level of $0.5, which also aligns with the channel’s upper trendline.

In case of a breakout from this region, the market should expect a surge toward the next resistance level at $0.55. However, if the price fails to exceed the above-mentioned level, a short-term consolidation would be the most probable outcome.

xrp_price_chart_1701231
Source: TradingView

The 4-Hour Chart

In the 4-hour timeframe, the price formed an ascending price channel pattern, and after being supported by the lower trendline, it started moving upward. However, the $0.4 resistance level has paused the rally for now, resulting in short-term price consolidation.

If the cryptocurrency surpasses the $0.4 level, the channel’s middle trendline and the $0.5 levels will be the next obstacles to surpass. On the other hand, if the $0.4 level rejects the price, the channel’s lower boundary will be the next significant support level.

xrp_price_chart_1701232
Source: TradingView
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Cryptocurrency charts by TradingView.



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By akohad

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