XRP price eyes a 20% move as Ripple consolidates to form a base
- XRP price has been hovering around the $0.604 support level for almost ten days.
- A resurgence of buying pressure at $0.604 could see Ripple rally 20% to $0.757.
- However, a breakdown of the $0.604 barrier could lead to a 20% crash to $0.518.
XRP price suffered a fatal crash along with other altcoins in the crypto space on January 21. While many cryptocurrencies have recovered, Ripple seems to be devoid of volatility as it forms a base.
XRP price lacks directional bias
XRP price has been testing the $0.604 barrier for roughly ten days with no significant bias leaning either way. Moreover, the volatility seems to be lost as daily returns for the crypto are hovering around 2 to 4%.
The $0.604 barrier is crucial in determining where XRP price will head next. A resurgence of buying pressure could be the key to triggering a 20% upswing to the daily supply zone, extending from $0.757 to $0.807.
Due to the presence of the 50-day Simple Moving Average inside the said supply zone at $0.773, there is a good chance the upside will be capped around this area. Therefore, a 21% gain seems likely for the remittance token.
XRP/USDT 1-day chart
While a bounce off the $0.604 barrier could induce a bullish outlook, a breakdown of the same support level will indicate that a leg down is likely for XRP price. In this situation, Ripple will revisit the $0.518 support barrier and slice through it to collect the sell-side liquidity resting below it.
This 20% crash would further remove the need for XRP price to head lower and set up a base for a move higher.
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.
