XRP price avoids bearish fate, but can bulls manifest $0.506
- XRP price recovered above the $0.382 support level, indicating a failure from sellers to take control.
- A resurgence of buying pressure could propel the remittance token to $0.506 to collect buy-stop liquidity.
- Invalidation of the bullish thesis will occur if Ripple produces a daily candlestick close below $0.360.
XRP price shows a clear sign of a bullish recovery after slipping below a crucial support level. This development indicates that the buyers are still in control and that an upswing is likely to emerge here. However, for Ripple’s bullish outlook to play out, it needs Bitcoin’s support.
XRP price recovery has a chance
XRP price slipped below the $0.382 support level on December 7. This move was in response to Bitcoin’s weakness. However, this surge in selling pressure was overcome by buyers, allowing the remittance token to recover above the said level.
This development that places XRP price above $0.382 fills sidelined buyers with optimism. Therefore, a surge in buying pressure at this level is likely to restart the recovery rally.
Assuming BTC triggers a run-up, it will serve as a tailwind to XRP price, catalyzing a 16% upswing to $0.448. Overcoming this blockade will open the path for Ripple to retest the $0.506 resistance level, bringing the total gain to 31%.
XRP/USDT 1-day chart
On the other hand, if buyers fail to step in, it will denote weakness and give bears another chance at a downswing. In such a case, a breakdown of the $0.360 level will create a lower low and invalidate the bullish thesis for Ripple price.
Such development could see XRP price slide lower and retest the $0.316 support level.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
