• 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.

 

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu price to erase half of the losses incurred and tag $0.000028

Shiba Inu (SHIB) has shed around 40% of its value due to concerns in global markets about the FED rate decision this evening against a background of geopolitical turmoil.

More Shiba Inu News

XRP presents buying opportunity before breakout to $1

XRP continues to test a new support zone in the $0.60 value area. Bottom likely in for XRP, relief rally, or trend change incoming. The Point and Figure chart shows a bullish entry opportunity.

More Ripple News

Cardano primed for relief rally towards $2.20

A brief technical and on-chain analysis on Cardano price. FXStreet's analysts evaluate why ADA could rebound swiftly. 

More Cardano News

IMF pushes El Salvador to drop Bitcoin as legal tender

The International Monetary Fund (IMF) has told El Salvador to remove Bitcoin’s status as legal tender. The IMF directors stated the move was due to concerns around financial stability, integrity and consumer protection.

More Cryptocurrencies News

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis

BTC

ETH

XRP