Ripple’s XRP Holds Above Key Resistance Level Amidst Bullish Momentum
Ripple’s XRP token has shown resilience in maintaining its gains above the $0.480 resistance level against the US dollar. Despite trading below $0.51 and the 100 simple moving average (4 hours), the cryptocurrency has formed a promising rising channel, with support near $0.480 on the 4-hour XRP/USD chart. Traders are closely watching for a potential breakthrough of the $0.50 and $0.51 resistance levels, which could propel the price even higher.
Recently, Ripple’s XRP experienced a corrective pullback from the resistance at $0.565 against the US dollar, similar to Bitcoin and Ethereum. It briefly dipped below the $0.525 support zone and even spiked below the critical $0.480 level. However, a low was established near $0.455, leading to a subsequent upward movement. The price saw a decent rise, surpassing the $0.4650 and $0.480 resistance levels.
Presently, XRP is trading below $0.510 and the 100 simple moving average (4 hours). On the 4-hour XRP/USD chart, there is an emerging rising channel, with support near $0.480. This pattern indicates a potential bullish continuation if the cryptocurrency manages to clear the hurdles at $0.50 and $0.51.
Looking at the upside, an initial resistance is anticipated around the $0.500 zone, followed by a more substantial obstacle at the $0.510 level, aligned with the 100 simple moving average (4 hours). Additionally, the price will encounter the 50% Fib retracement level of the downward move from the $0.5650 swing high to the $0.4550 low. A successful breach of the $0.51 resistance level could pave the way for a rally toward the $0.525 resistance, with the possibility of further gains testing the $0.550 resistance.
However, Ripple might face another downside correction if it fails to overcome the $0.51 resistance zone. Initial support lies near the $0.480 zone and the trend line of the rising channel. The subsequent crucial support is expected to be around $0.455. A breach and a close below the $0.455 level may lead to extended losses, potentially pushing the price to retest the $0.425 support zone.
Assessing the technical indicators, the 4-hour MACD (Moving Average Convergence Divergence) for XRP/USD has entered the bullish zone, signaling an uptick in positive momentum. Furthermore, the 4-hour RSI (Relative Strength Index) has risen above the 50 level, indicating a favorable sentiment among traders.
Key support levels for XRP include $0.480, $0.455, and $0.420, while significant resistance levels to monitor are $0.500, $0.510, and $0.550.
Despite facing resistance below $0.51 and the 100 simple moving average (4 hours), Ripple’s XRP remains in a favorable position, supported by a rising channel pattern and a strong bounce from the recent low near $0.455. Traders are closely watching for a potential breakthrough above the $0.51 resistance level, which could trigger a bullish rally toward $0.525 and even $0.550. Conversely, a failure to clear the resistance could lead to a downside correction, with crucial support levels standing at $0.480 and $0.455.
