• Ripple price resisting the heavy selling in the cryptocurrency complex.
  • Rising 10-week simple moving average (SMA) stabilizing the downside.
  • Bitcoin price action and SEC investigation remain wildcards. 

Ripple price is unchanged this week despite the volatility in the cryptocurrency complex. The longer-term perspective supports a more bullish outlook in the coming weeks, as long as the rising trendline and the 10-week SMA repel any renewed selling pressure.

Ripple price bending, but not breaking during volatile week

There is no doubt that the Ripple price action since November 2020 has been complex, driving traders from enthusiasm to fear in a matter of days. The combination of technicals, fundamental catalysts like the ongoing SEC investigation, and the looming presence of Bitcoin have combined to create one of the most volatile charts in the cryptocurrency space, highlighted by a large number of sizable wicks on the weekly candlesticks.

Critical to the bullish outlook is the unwavering support of the 10-week SMA and the rising trendline,  around $0.46 at the time of writing. A weekly close below will raise the odds that XRP is preparing to break with the 2021 uptrend.

On the upside, the obstacle facing traders is $0.60. Since November 2020, XRP has failed to close above the price level on 7 of 9 breakout attempts, including being rejected earlier this week. 

A weekly close above $0.60 will set the stage for an impulsive XRP rally to the November 2020 high at $0.78. This can then lead to the September 2018 high at $0.79, delivering a 55% gain from the current price.

XRP/USD weekly chart

XRP/USD weekly chart

As mentioned above, $0.46 is the line in the sand for XRP. A weekly close below will leave XRP vulnerable to a swift decline to the 40-week SMA at $0.34, yielding a 24% loss from the trendline.

The only credible support after the 40-week SMA is the 0.786 Fibonacci retracement level of the January–February rally at $0.30.

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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