XRP price eyes a 20% move as Ripple consolidates to form a base
|- XRP price has been hovering around the $0.604 support level for almost ten days.
- A resurgence of buying pressure at $0.604 could see Ripple rally 20% to $0.757.
- However, a breakdown of the $0.604 barrier could lead to a 20% crash to $0.518.
XRP price suffered a fatal crash along with other altcoins in the crypto space on January 21. While many cryptocurrencies have recovered, Ripple seems to be devoid of volatility as it forms a base.
XRP price lacks directional bias
XRP price has been testing the $0.604 barrier for roughly ten days with no significant bias leaning either way. Moreover, the volatility seems to be lost as daily returns for the crypto are hovering around 2 to 4%.
The $0.604 barrier is crucial in determining where XRP price will head next. A resurgence of buying pressure could be the key to triggering a 20% upswing to the daily supply zone, extending from $0.757 to $0.807.
Due to the presence of the 50-day Simple Moving Average inside the said supply zone at $0.773, there is a good chance the upside will be capped around this area. Therefore, a 21% gain seems likely for the remittance token.
XRP/USDT 1-day chart
While a bounce off the $0.604 barrier could induce a bullish outlook, a breakdown of the same support level will indicate that a leg down is likely for XRP price. In this situation, Ripple will revisit the $0.518 support barrier and slice through it to collect the sell-side liquidity resting below it.
This 20% crash would further remove the need for XRP price to head lower and set up a base for a move higher.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.