XRP price clears one of two major hurdles, as Ripple bulls gear up for $1.27
- XRP price has rallied 20% over the past three days and is currently taking a break.
- While the bullish momentum recedes, the $1.01 to $0.964 support area must hold.
- A breakdown of the $0.89 support level will create a lower low, invalidating the bullish thesis.
XRP price has been slowly building up steam as it traded below a crucial support floor for five days. However, October 1 saw cryptocurrency markets rally, which caused the remittance token to propel past a stiff blockade. Investors should note that Ripple needs to stay above this barrier for further gains.
XRP price prepares for second leg-up
XRP price rose 20% between September 29 and October 2, pushing it past the $1.01 to $0.964 support area. This move comes after Ripple bulls were unable to breach the said zone for roughly five days.
While significant, XRP price needs to stay above this range to have any chances of heading higher. Even if the bears push Ripple lower, a quick recovery will help maintain the bullish momentum of the recent development.
In this case, XRP price could rally 26% to tag $1.27 if it manages to breach the $1.09 supply barrier. Beyond $1.27, the remittance token could retest the September 6 swing high at $1.31 and make its way into the Fair Value Gap (FVG), ranging from $1.3 to $1.60.
XRP/USDT 1-day chart
Regardless of the bullish development seen over the past 24 hours, things could turn ugly if the bears knock XRP price below $0.964. A decisive close below this level will indicate a weak buying pressure.
However, a convincing close below the $0.89 support level will create a lower low, invalidating the bullish thesis.
Such a move is likely to trigger further descent to $0.84 or $0.77.
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.
