Ripple (XRP) Bullish Breakout Seems Real: Indicators Suggest Sustained Rally
Ripple is up over 2% and it broke the main $0.2000 resistance zone against the US Dollar. XRP price is trading in a positive zone and it could continue to rise towards $0.2120 or $0.2150.
- Ripple price broke a couple of important hurdles near the $0.2000 level against the US dollar.
- The price spiked towards $0.2050 and it is currently correcting gains.
- There was a break above this week’s followed bullish flag with resistance near $0.1990 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- The pair could correct in the short-term, but it is likely to resume its upward move towards $0.2120.
Ripple Price Breaks Key Resistance
In the past few analysis, we followed a bullish flag pattern for ripple’s XRP, with hurdles near $0.2000. The price did remain in a positive zone above the $0.1920 support level and the 100 simple moving average (4-hours).
As a result, the price broke to the upside and cleared a heavy resistance near $0.2000. There was also a break above this week’s followed bullish flag with resistance near $0.1990 on the 4-hours chart of the XRP/USD pair.
The pair spiked towards the $0.2050 level and traded to a new weekly high at $0.2055. The price is currently correcting lower and trading below $0.2040. An initial support is near the $0.2025 level, plus the 23.6% Fib retracement level of the recent upward move from the $0.1916 low to $0.2055 high.
Ripple (XRP) price settles above $0.2000. Source: TradingView.com
On the downside, the main support is near the $0.2000 level and the recent breakout zone. The 50% Fib retracement level of the recent upward move from the $0.1916 low to $0.2055 high is also near the $0.1985 level.
The price is clearly showing a lot of positive signs and it might continue to rise above the $0.2050 level. The next major resistance is near the $0.2120 level, above which the bulls are likely to aim a test of $0.2150.
Downsides Likely To Be Limited in XRP
In the short-term, there could be a downside correction in ripple below $0.2020. However, the bulls are likely to defend the $0.2000 and $0.1985 support levels.
If there is a bearish break below the $0.1985 support, there is a risk of a trend line. The last line of defense could be 100 simple moving average (4-hours) and $0.1965, below which the price might revisit $0.1900.
4-Hours MACD – The MACD for XRP/USD is slowly gaining strength in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is currently well above the 55 level.
Major Support Levels – $0.2020, $0.2000 and $0.1985.
Major Resistance Levels – $0.2050, $0.2120 and $0.2150.
Risk disclaimer: 76.4% of retail CFD accounts lose money.