Ripple’s price growth continues to climb further higher after increasing by another 4.24% over the previous 24 hours of trading. Ripple’s cryptocurrency XRP is now trading at a price of around $0.4288 after an impressive 44% price surge over the past 30 trading days. The cryptocurrency is now nearing the $0.50 level.
Ripple remains ranked in 3rd position in market cap rankings, as it presently holds an $18.05 billion market cap valuation. Ripple still sits a strong $10 billion behind second place holder Ethereum (ETH), but is quickly starting to close the gap once again.
In this article, we will take a look at the XRP/USD market and highlight some potential areas of resistance on the way toward $0.50.
The technical indicators are in a position that may suggest that something big is about to happen for Ripple. Let us take a look at the market.
Ripple Price Analysis
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 reaching the resistance at $0.46 during mid-May 2019, the Ripple market rolled over and fell into the support around $0.3613. This support was provided by the 200-day moving average level. After reaching this level of support, the market rebounded and started to climb higher again.
We can see that the market has now reached the resistance at the short-term 1.414 Fibonacci Extension level (drawn in green), priced at $0.4376.
What Is the Current Trend?
The current trend within Ripple remains bullish after the market managed to rebound at the 200-day moving average level. For this current trend to become invalidated, we would need to see price action fall and break beneath the $0.35 area. If price action was to fall back beneath $0.3, we could consider the market as bearish.
Where Is the Resistance Toward $0.50?
If the bulls can continue to cause XRP/USD above the current resistance at $0.4376, we can expect immediate higher resistance above to be located at $0.4579 and $0.4617. The resistance at $0.4617 is provided by a long-term bearish Fibonacci Retracement level (drawn in red), measured from the November 2018 high to the December 2018 low.
If the buyers can continue to climb further higher above the $0.47 level, we can expect further resistance above at $0.48. If they can clear $0.48, the bulls are free to make an attempt at the target level of $0.50.
Above $0.50, further higher resistance can then be located at the bearish .786 and .886 Fibonacci retracement levels (drawn in red), priced at $0.5098 and $0.5384, respectively.
Where Is the Support Beneath the Market?
Alternatively, if the sellers regroup and begin to push the market lower, we can expect immediate support beneath the market to be located at the previous short-term 1.272 FIbonacci Extension level (drawn in green), priced at $0.4245. If the sellers continue beneath $0.42, further support can be found at $0.40.
Beneath $0.40, further support below can then be located at $0.3906, $0.3790, and $0.3614.
What Are the Technical Indicators Showing?
The technical indicators are in a position that suggests a big move higher might be about to occur. The Stochastic RSI is currently trading within extreme oversold conditions, and is ready to produce a bullish crossover above signal. This would suggest that the bulls are now ready to make a push further higher toward $0.5.
Furthermore, the RSI has recently rebounded at the 50 level and climbed further higher. This is a good sign for the bulls, as it suggests that the buyers are still in control of the market momentum and that their momentum is now growing.
After being able to break above the $0.40 level, the Ripple market has turned into a slightly bullish market. Ripple struggled to break above $0.40 for the entire period of 2019 until mid-May 2019, and therefore this area is expected to provide strong support moving forward.
Ripple most certainly can continue its run higher toward $0.5, but the market will need to contest resistance at $0.43, $0.45, and $0.48 before being able to make an attempt at the target level.