XRP Targets $0.55 as Major Obstacle for Another Rally (Ripple Price Analysis)
After going through an impulsive bullish rally, Ripple has broken through several resistance levels, such as the 50-day moving average, the multi-month triangle pattern, and its previous major swing highs. However, the price now faces a significant decisive resistance zone at $0.55.
Technical Analysis
By Shayan
The Daily Chart
Following an impulsive spike, the price has claimed many critical resistance levels, creating a bullish sentiment for the cryptocurrency. However, after reaching a significant barrier of around $0.55, the rally temporarily halted, and the price declined a bit.
Although the slight rejection could be seen as a short-term correction before the next climb above the mentioned resistance area, $0.42 acts as critical support in the event of a sudden drop.
This is particularly relevant since the 50-day moving average is currently around $0.42, making it a powerful support level.
The 4-Hour Chart
Typically, a healthy bullish rally consists of an impulsive phase characterized by a significant surge, followed by a corrective phase, during which the price forms correction patterns.
As illustrated in the chart below, Ripple experienced an impulsive rally, breaking through the descending price channel, and then entered a short-term correction phase, which formed a symmetrical triangle pattern.
Following all this, the cryptocurrency resumed its upward trend by breaking above the triangle’s upper boundary with a strong move. However, when the price reached the critical resistance zone of $0.55, the rally paused, and Ripple entered another correction stage, forming a descending flag pattern.
To summarize, if the price breaks above the flag pattern and claims the $0.55 resistance level, it may trigger an extensive rally. However, the minor $0.48 zone will serve as Ripple’s primary support if rejection occurs.
The post XRP Targets $0.55 as Major Obstacle for Another Rally (Ripple Price Analysis) appeared first on CryptoPotato.
Filed under: Bitcoin - @ April 5, 2023 2:16 pm