Ripple has seen a 10% price surge over the past 24 hours, causing the cryptocurrency to rise above the $0.40 level to where it currently trades at $0.4218. Ripple has now seen a mighty turnaround over the past 30 days of trading, which has seen the cryptocurrency increase by a total of 42% allowing Ripple to break out of its 2019 sideways trading range.
With the latest price increases, in this article, we will take a look at the resistance for Ripple as it heats up for $0.5. For Ripple to increase and reach the $0.5 target level, the cryptocurrency would need to rise by a total of 18% from the current price of $0.4218. The last time that Ripple was at the $0.5 level was during November 2018 before the November cryptocurrency bloodbath caused a huge market wipeout.
Ripple remains ranked in the 3rd position amongst the top cryptocurrencies by market cap valuation as it currently holds a $17.76 billion market cap value.
Let us continue to take a look at the Ripple market against the US Dollar and highlight some potential areas of resistance on the way toward $0.5.
XRP/USD – MEDIUM TERM – DAILY CHART
What Has Been Going On?
Taking a look at the XRP/USD chart above, we can see that Ripple has increased by a total of 74% from low to high in May 2019. Toward mid-May 2019, we can see that the cryptocurrency began to surge from a low beneath $0.3 to break above both the 100-day moving average and the 200-day moving average level. The cryptocurrency continued to climb further above the 200-day moving average to reach a high at $0.48.
After reaching $0.48, Ripple rolled over and began to decline until reaching support at the 200-day moving average level again at $0.36. Ripple has now, once again, rebounded at this level and now currently trades at the $0.4256 level.
What Is The Current Trend?
As Ripple has managed to remain above the $0.40 level, the current short term trend remains bullish. For this bullish trend to be invalidated, we would need to to see Ripple fall and break beneath the $0.35 support level.
How Realistic Is $0.5?
If the bullish pressure continues above $0.43, we can expect immediate further higher resistance above to be located at $0.4376, $0.44 and $0.46. The resistance at $0.46 is further bolstered by the long term bearish .618 Fibonacci Retracement level (Drawn in red) measured from the November 2018 high to the December 2018 low.
If the buyers continue above $0.46, further higher resistance can then be located at $0.48 and $0.49. If the bulls can clear the $0.49 level, they will be clear to make an attempt at the target level of $0.5.
Above $0.5, further higher resistance can then be found at the bearish .786 and .886 Fibonacci Retracement levels (drawn in red) priced at $0.5098 and $0.5384, respectively.
What If The Sellers Regain Control?
Alternatively, if the sellers regroup and begin to push the market lower, we can expect immediate support beneath the market to be located at $0.4235, $0.41 and $0.40. If the selling continues beneath $0.40, further support can then be expected at the short term .5 and .618 Fibonacci Retracement levels (drawn in blue) priced at $0.3790 and $0.3548, respectively.
What Are The Technical Indicators Showing?
The Stochastic RSI is in a very strong position to provide a bullish crossover signal as it currently trades within extreme oversold conditions. If the crossover occurs, we can expect XRP/USD to continue further higher toward the $0.5 resistance level. Furthermore, the RSI itself has recently bounced from the 50 level which indicates that the bulls remain in control of the market momentum.
The recent price explosion above $0.42 for Ripple has now allowed the cryptocurrency to heat up for $0.5. For Ripple to hit $0.5, we would need to see price action increase by a total of 18%. Ripple will also need to overcome strong resistance at $0.46 and $0.48 before being clear to make an attempt at $0.5.
If the Stochastic RSI signal occurs soon, we could even see Ripple reaching the $0.5 level in the first week of June 2019.