- XRP price is moving inside an ascending parallel channel pattern lacking a clear path for where it is heading next.
- A 4-hour close above or below the channel will confirm a 30% move in that direction.
- On the upside, this cryptocurrency may target $0.75, but if sell orders pile up, it may take aim at the $0.46 support level.
XRP price has been consolidating within a narrow range over the past two weeks. Although this altcoin seems in an uptrend making a series of higher highs and higher lows, there are two critical levels that will determine where it is heading next.
Ripple price prepares for a 30% breakout
XRP price dumped all the way down to $0.35 on February 2 after rising to a yearly high of $0.76. Following the massive downswing, this cryptocurrency formed an ascending channel where it has been contained over the past two weeks.
At the time of writing, XRP price is trading around the channel’s upper trendline at $0.55, waiting to establish a clear trend.
The last time Ripple’s native cryptocurrency tested this resistance barrier it was rejected, which led to a 20% correction. Therefore, it is critical that XRP price slices through the overhead barrier and closes above $0.57. This would establish a new bullish uptrend that may push XRP’s market value 30% to hit a target of $0.75.
XRP/USDT 4-hour chart
Nonetheless, a spike in selling pressure around the current levels could trigger another rejection from the channel's upper trendline. This may result in a slow correction towards the 50 four-hour moving average at $0.46.
XRP/USDT 4-hour chart
If the number of sell orders behind XRP is significant enough the 50 four-hour moving average may fail to keep falling price at bay. Under such pessimistic circumstances, Ripple price could dive towards the 100 or 200 four-hour moving average.
These support levels sit at $0.40 and $0.35, respectively.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.