How to position your trading account before XRP price breaks out
|- Ripple price is set to pop back above $0.4228 as technical indicators show buying signs.
- XRP price could reclaim $0.50 in the process.
- If so, XRP price could be set to rally even higher next week.
Ripple (XRP) price is on the cusp of popping higher propelled by relentless buying from bulls. This is reflected in the Relative Strength Index (RSI) not showing any signs of cooling down or dropping back towards the oversold area. Price action could accelerate once it rises above $0.4228, opening up space for a 20% rally towards $0.50, and reclaiming a few key support levels on the way.
XRP price set to reclaim a few key hurdles
Ripple price is showing promising signs of bullishness to come as both the RSI and the price encounter robust support from which to make a platform for a move higher. Price action has been posting higher lows since the beginning of this week, and a squeeze further to the upside is now set to unfold. With bullish pressure mounting, buyers are getting ready to reclaim at least three vital pivotal levels.
XRP price will first see pressure building at $0.4228, the first pivotal historical level nearby. Once that level is tested for support, expect a further stretch to the upside towards $0.50, with bulls capturing the monthly pivot and the historic pivotal level at $0.48. Going into the weekend, this will be the optimum position for bulls to continue reaping gains looking ahead.
XRP/USD daily chart
From a bearish perspective, the risk to the downside comes from $0.4228 which could prove too big a hurdle to break above. In such a scenario, bears might match bullish price action and add to existing short positions, outweighing the buying power of bulls. That would lead XRP price to dip towards $0.3710, and if some more risk-off were added, to break below $0.3043 – a not impossible eventuality in a downtrending market.
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