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XRP is on the brink of recovery, with still one more crucial resistance barrier to overcome

  • Ripple's XRP will jump to $0.82 once it clears a sloping trendline at $0.6.
  • A move below $0.5 will invalidate the bullish scenario.

Ripple's XRP is changing hands at $0.57 at the time of writing, having gained over 10% on a day-to-day basis. However, despite the recovery, it is still 9% down on a weekly basis. The coin hit the multi-year high at $0.7824 on November 24 before speculative accounts started cashing out their profits and pushed the third-largest digital asset price below $0.6.  

XRP market value has settled at $25 billion, while its average daily trading volume exceeds $11 billion.  

XRP upside momentum is capped by $0.6

On the 4-hour chart, XRP's recovery is capped by $0.6 created by a sloping trend line of the symmetrical triangle pattern.  This barrier is also reinforced by a combination of the 50 and the 100 EMA in the same timeframe. Only a sustainable move above this significant technical hurdle will improve the short-term technical picture and allow for an extended recovery with the initial target at the psychological $0.7 followed by $0.82, representing a 38% increase from the breakout level. 

XRP's 4-hour chart

XRP 4-hour chart

On the other hand, a rejection from the critical resistance will bring $0.5 into focus. This psychological support coincides with the December 9 low and the lower line of the triangle. Once it is broken, the downside momentum will gain traction and bring XRP to the next local barrier at $0.45 created by 4-hour 200 EMA. Meanwhile, the ultimate bearish target comes at $0.31, which is a measured move from the triangle formation.

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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