Ripple price analysis: XRP seeks support above $1.50

ADVERTISEMENT

The price of XRP retreated below 1.50 USD, but remains well supported above the 100 SMA on the 4-hour chart.

XRP traded down around 7.5% on the day, after its intraday price dropped from 1.55 USD. Currently, the value of the cryptocurrency is hovering around $1.49 as bulls look to recover after hitting a low of $1.40.

Ripple’s market woes are the complete opposite of Ethereum’s parabolic surge over the past 24 hours. The second-largest cryptocurrency by market cap is up nearly 8% on the day and over 30% in the past week, and is expected to consolidate above $3,300.

ADVERTISEMENT

As for XRP, buyers need to turn $1.50 into support before attempting a new all-time high.

The popular but pseudonymous XRP cryptoanalyst WZRD says the technical outlook for XRP/USD and XRP/BTC suggests the likelihood of further gains towards a new ATH. According to the analyst, a bullish breakout in the BTC pair will help catapult the XRP price above $1.95.
Ripple price forecast
XRP/USD remains in positive territory as seen on the 4-hour chart despite reversing below the support line of the recently formed ascending channel. This happened after the breakout from the low of USD 0.94 on April 25, when prices traded above the downtrend line and reached USD 1.66.

As long as the price stays above the 0.5 Fibonacci retracement level of the USD 1.96 to USD 0.91 to USD 1.44 range, the XRP is likely to bounce higher. In this case, the bulls are likely to target the last resistance levels at USD 1.56 (Fibo level 0.618) and USD 1.74 (Fibo level 0.786).

This outlook will remain in place if price falls below the USD 1.40 anchor but bounces off the SMA 100 price level near USD 1.35.

To the downside, the MACD is in the bearish zone and the RSI shows a negative divergence below 50, suggesting that sellers have the advantage.

The downtrend in the upper channel could intensify if the decline fails to hold above the 100 SMA, in which case the decline could head for a break of the $1.30 level and head towards the support area near $1.12 (red horizontal line). The psychological threshold of $1 is the main demand zone from which a new rally could take place.

ADVERTISEMENT