Ripple Price Analysis: XRP/USD needs to crack critical 21-DMA for a rally towards $0.60
- XRP/USD in search of a fresh direction while ranging between 21 and 50-DMAs.
- The No. 7 coin forms higher highs on the 1D chart, suggesting a potential upside break.
- RSI trades flat at the midline, bulls need to crack only this one barrier at $0.4905.
Ripple (XRP/USD) has been a sideshow throughout this week, although likely to end the week higher by 5%, as the bulls snap a two-week winning streak.
XRP/USD stands resilient to the ongoing lawsuit filed by the US Securities and Exchange Commission (SEC), finding support from the recent comments from Ripple’s Chief Executive Officer (CEO) Brad Garlinghouse.
“It (the lawsuit) has hindered activity in the United States, but it has not really impacted what’s going on for us in the Asia Pacific,” Garlinghouse said in a Reuters interview on Friday.
He added: “We have been able to continue to grow the business in Asia and Japan because we’ve had regulatory clarity in those markets.”
The token also cheers the recovery stated by Bitcoin late Friday, as XRP bulls now look to reverse Friday’s slump and yield a break to the upside.
XRP/USD: Prepping up for a big move higher?
XRP/USD: Daily chart
Ripple’s daily chart shows that the price remains locked in a tight range for the eleventh day in a row, although forming higher highs.
The range has been secured by the bearish 21-daily moving average (DMA) on the upside while the upward-sloping 50-DMA cushions the downside.
The 14-day Relative Strength Index (RSI) trades listless but almost at the midline, suggesting that the spot lacks a clear directional bias.
Amidst such a technical picture, the prospects of an upside break appear more compelling, given that the price has been forming higher highs.
Further, the XRP bulls have to cross only one critical barrier at $0.4905 in order to unleash the additional recovery gains. That level is the 21-DMA.
The next relevant resistance is seen at the psychological $0.50, above which the falling trendline resistance at $0.5877 could test the bulls’ commitments.
On the flip side, a bunch of healthy support levels is stacked up, which could likely make it a tough task for the sellers to extend their control.
Immediate support awaits at the 50-DMA of $0.4241, below which the February 23 low at $0.3658 could be challenged.
Further south, the strong support at $0.3494 (200-DMA) could be the last line of defense for the XRP bulls.
To conclude, the path of least resistance appears to the upside if the 21-DMA barrier is taken out on a daily closing basis.
XRP/USD: Additional levels to consider
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
