Ripple has seen a small price increase totaling 3.74% over the past 24 hours of trading, as the cryptocurrency heats up for $0.40, bringing the current price for the coin up to around $0.3920. Ripple has now seen a 21% price surge over the past 30 trading days after a long sideways period of stagnant trading within 2019.
Ripple sits in the 3rd position in the top cryptocurrency projects by market cap value as it currently holds a strong $16.48 billion market cap.
The Ripple cryptocurrency has been struggling heavily against Bitcoin as seen in the chart below;
The cryptocurrency had started the year at a high around 9500 SAT but has continued to fall throughout the entire year to reach a low of around 4000 SAT. However, we can see that during mid-May 2019, the XRP/BTC market had experienced a slight bounce higher that had allowed XRP/USD to break out of its sideways stagnant trading period. XRP/BTC now has strong support toward the downside at the 4731 SAT and 4475 SAT.
Let us continue to take a look at the XRP/USD market and highlight some potential areas of support and resistance moving forward.
XRP/USD – MEDIUM TERM – DAILY CHART
What Has Been Going On?
Taking a look at the XRP/USD market above, we can see that after XRP/BTC had bounced from the low at 4000 SAT during mid-May, XRP/USD went on to surge further higher to reach the resistance at the $0.4617 level, provided by a long term bearish .618 Fibonacci Retracement level.
Ripple has since fallen from this high but has managed to hold the support around the 200-day moving average level around the $0.36 level. This area of support is further bolstered by the short term .618 Fibonacci Retracement level (drawn in blue) priced at $0.3548.
Ripple has rebounded from this support and currently trades at the $0.3929 level as it makes its way towards $0.40.
What Is The Current Trend?
The current short term trend from Ripple is presently neutral until price action can break and close above the $0.46 level. If Ripple was to fall beneath the support at the $0.36 level, we could consider the trend for Ripple to then be bearish.
Where Is The Resistance Above $0.4?
If the bullish pressure continues to cause XRP/USD to climb above the resistance at the $0.40 level, we can expect higher resistance above $0.40 to be located at the short term 1.272 and 1.414 Fibonacci Extension levels (drawn in green) priced at $0.4235 and $0.4376, respectively.
Above this, further resistance can then be expected at the long term bearish .618 Fibonacci REtracement level (drawn in red) priced at $0.4617. Price action was unable to close above this resistance during April 2019 and is expected to provide strong resistance moving forward. This long term bearish Fibonacci REtracement level is measured from the November 2018 high to the December 2018 low.
If the buyers can continue above $0.4617, further higher resistance above this is then to be expected at the $0.48 and $0.50 level. If the bulls continue above $0.50, further resistance then lies at the bearish .786 and .886 Fibonacci Retracement levels (drawn in red) priced at $0.5098 and $0.5384.
What If The Sellers Push The Market Lower?
Alternatively, if the sellers regroup and push the market lower again we can expect immediate support to be located at the short term .5 and .618 Fibonacci Retracement levels (drawn in blue) priced at $0.3790 and $0.3548 (which also contains the 200-day moving average).
If the sellers continue beneath the 200-day moving average, further support below is located at $0.35, $0.34 and $0.32.
What Are The Technical Indicators Showing?
The RSI has recently rebounded from the 50 level which is a promising sign for the bulls as it suggests that they are still in control of the market. If the RSI can climb further higher away from the 50 level we can expect XRP/USD to continue further above $0.40.
The recent 21% price increase over the past 30 days now has Ripple heating up to reach the $0.4 level and travel much further higher. If the bulls do push RIpple above $0.4, the next level of significant resistance is located at the April 2019 high day close at around $0.46.