The formation of a W pattern suggests XRP price could break above $0.50 and retest recent highs if bulls strengthen
As Bitcoin (BTC) looks to reclaim and establish support above $50,000, several altcoins are printing gains that could build towards fresh rallies. Ripple (XRP) is one such coin, having gained over 5% in the past 24 hours to see it top other top ten assets.
XRP price has hit an intraday high of $0.47 and could break above a downtrend line and rally towards the critical supply barrier at $0.55. The appearance of a bullish pattern also means that another leg up could see Ripple’s price aim for recent highs at $0.65.
Bulls could also retest resistance near $0.79 short term, although an opposite outlook could materialise and see a pullback to lows of $0.40 and potentially $0.25.
XRP price remains within an ascending parallel channel, with the current price level coming off a bounce near the lower boundary of the channel.
The upside to $0.47 puts XRP on the cusp of breaking above a short-term downtrend line formed since the retreat from $0.64 high to $0.39 low.
If bulls manage to push higher on increased buying, they could settle well above the 50% Fibonacci retracement level and the 20-day EMA ($0.467). Such a move would allow buyers to seek a fresh attack at the resistance near the 61.8% Fib level ($0.55).
The middle line of the ascending channel is also located around the said Fib barrier. A clear break above could strengthen bulls’ push for $0.65 and $0.79.
The above outlook will likely become clearer if the MACD validates its hidden bullish divergence. The buy signal of the Super Trend indicator and the W pattern suggested by the trend line also supports the upside perspective.
The above bullish view would be at risk of dissipating if bulls fail to break above the aforementioned supply wall (50% Fib level). In case this happens and bears push XRP/USD below $0.44, the main support zone is at $0.40 (the 38.2% Fib level).
Any more losses from this level could turn XRP’s short-term market outlook bearish and see increased selling that could plunge prices past the lower support of the channel.
The 23.6% Fibonacci retracement level ($0.31) could provide another anchor, although a diving XRP/USD pair could reach horizontal support at $0.25.
The post Ripple Price: XRP poised near key supply barrier at $0.50 appeared first on Coin Journal.
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