- Ripple’s XRP is bullish in the short-term but the long-term trend is still strongly bearish.
- XRP bulls must pull out of the channel resistance and hold ground above $0.38 for continued upside momentum.
Ripple’s XRP is still locked in the confines of a channel we explored in an earlier published price analysis. There was an attempt to correct above the trendline resistance, however, the bulls were unable to sustain the trend after hitting a snag at $0.3240.
The second largest crypto and the world’s largest altcoin is supported by increasing trading volume according to the data on CoinMarketCap. For instance, although the volume deflated following the selloff on Sunday last week to $363 million, it has recovered to the current $400 million. Its market value has remained stable above $13 billion for more than two weeks.
XRP bounced to test the channel resistance at $0.3240 after the declines on Sunday found support around $0.3160 (channel support). The buyers’ intent to escape the range resistance stepped above $0.3200. However, the momentum fizzled out as the price turned bearish on brushing shoulders with $0.3240. The descending trendline has been limiting the gains as XRP traded lower lows and lower highs.
According to the confluence detector tool, the path to the upside is laced with strong hurdles with the initial one highlighted at $0.3258. If Ripple’s XRP manages to escape the range resistance, further correction to the upside will have to deal with the resistance at $0.3291 before battling the supply zone at $0.33. The bulls must bring the price above $0.38 for XRP/USD to come out for the range in the next few days. A correction above $0.4 will mark the ultimate breakout that could have XRP trading above $0.45.
Marginally below the current market value, XRP will be supported at $0.3191 in the event the bears increase their grip. Ripple has a shortage of support areas, therefore, it is likely that a slide past $0.31 will breakdown further towards the lows this year at $0.28.
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