XRP keeps its eyes on $1.00, a 25% profitable trade
- Ripple price action is, at the moment, stuck between a rock and a hard place.
- XRP bulls have the upper hand as the recent uptrend is in their favour.
- A return to or above $1.00 looks to be the perfect setup next week.
Ripple (XRP) price action saw a solid bounce off the 55-day Simple Moving Average but got a rejection earlier in the week against the green ascending trend line at $0.86. As both sides get served, expect the price to get squeezed in from both sides with a breakout for next week that could go to $1.00 depending on the positive news and de-escalation in Ukraine. Depending on how strong the tailwinds coming from global markets will be, expect at least 25% of gains in the cards.
Ripple to consolidate prior to a bullish breakout
Ripple price action saw bulls coming in and supporting the falling price action earlier this week as the 55-day SMA at $0.75 proves its importance as bulls have turned the element into support the week before. Although there was a lot of volatility and several asset classes got thrown from left to right and back again, XRP, all in all, withstood the rocky boat ride quite well. To the upside, the green ascending trend line did not look ready to allow XRP price action to pop back into the uptrend, around $0.87.
XRP price for next week looks steady to see prices getting squeezed further in from both the upside and the downside, consolidation before the breakout to the upside. That comes as February overall has been a very bullish month for XRP prices, and it does not look as if the rally is over yet, with a target at $1.00, near the R2 resistance level. In the process, bulls would be able to turn the 200-day SMA, which is even more vital to hold if bulls want to undo the death cross and overall longer-term downtrend.
XRP/USD weekly chart
Risk to the downside comes from a break back below the 55-day SMA that would fall back in the hands of the bears and become a cap on the topside again. With that, bears would have room to maneuver and push price-action towards the monthly pivot at $0.68. Depending on the ruling sentiment at that moment and how willing investors are to put money on the table, price action could fall even further to $0.50 at the monthly S1 support level.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
