XRP Sits At Crucial Juncture, And Only This Variable Can Trigger A New Rally
NEW DELHI (CoinChapter.com) — XRP new rally may come if it closes above a crucial resistance at $0.4850. If the bulls defend against a downside break, there could be a fresh surge.
XRP New Rally Prospects
XRP steadily declined from the $0.750 resistance in the past few weeks. The price dropped below the $0.650 and $0.60 support levels to enter a bearish zone. The bears stayed well below the $0.550 level and the 50-week simple moving average (blue).
Finally, the bulls appeared near the $0.4850 support zone. A low was formed near $0.4857, and the price consolidated losses. However, the current price action is still negative (unlike Bitcoin and Ethereum), and there are chances of more downsides unless the bulls continue to protect the $0.4850 support.
If XRP price attempts a recovery wave, it could face resistance near the $0.5350 and the 50-week simple moving average (blue). The first major resistance sits near the 23.6% Fib retracement level of the downward move from the $0.7500 swing high to the $0.4587 low at $0.5480.
On the weekly chart, an important contracting triangle is forming with resistance at $0.5500. A clear upside break above the 50-week simple moving average (blue) and the triangle resistance zone could spark a steady increase.
In the stated case, the next stop could be $0.620 if the XRP new rally setup persists. The main resistance sits near the $0.650 zone or the 61.8% Fib retracement level of the downward move from the $0.7500 swing high to the $0.4587 low, above which the price could start a larger uptrend toward $1.00.
Downside Break?
A strong bearish reaction might occur if the XRP price fails to stay above the triangle support. The first major support is $0.4165. A downside break below the $0.4165 support might start a major decline. The price may decline toward the $0.300 level in the stated case. Any more losses below $0.300 might send the price toward $0.240.
Overall, the XRP price is approaching crucial support at $0.485. A downside break might trigger heavy losses, and the price could test 0.4165. Conversely, the price might increase fresh and attempt an upside break above $0.550.
The post XRP Sits At Crucial Juncture, And Only This Variable Can Trigger A New Rally appeared first on CoinChapter.
Filed under: Bitcoin - @ February 8, 2024 11:15 am