- XRP price recently bounced off the daily demand zone, extending from $0.694 to $0.753.
- The resulting uptrend failed to continue, returning to the immediate support level to restart another uptrend.
- A breakdown of the $0.694 support level will invalidate the bullish thesis for Ripple.
XRP price has hovered around a crucial high time frame support level for months. The recent retest of this barrier should have restarted an impressive run-up but Ripple faces multiple hurdles, resulting in a truncated uptrend.
XRP price dreams of a swift move
XRP price bounced off the $0.694 to $0.753 daily demand zone, leading to a 15% upswing. However, this rally reversed even before it retested the resistance barrier at $0.817. The downswing took the remittance token back to the pavilion, retesting the aforementioned demand zone.
If XRP price manages to kick-start another uptrend, there is a high chance it will be capped at 10% due to the 50-day Simple Moving Average (SMA) at $0.851. Cleaning this hurdle will open the path for a 12% upswing, bringing Ripple to revisit the 200-day SMA at $0.953.
This run-up will constitute a 22% climb and has a less probability of occurring as compared to the 10% rally to the 50-day SMA.
Any move beyond the 200-day SMA seems unlikely due to the presence of the 100-day SMA at $0.984.
XRP/USDT 1-day chart
On the other hand, the daily demand zone, extending from $0.698 to $0.753 has been tested multiple times over the past five months. Hence, the chances of a breakdown of this barrier are more.
If XRP price produces a daily candlestick close below $0.698, it will create a lower low, invalidating the bullish thesis. This development could open the path for Ripple bears to knock the altcoin down to $0.604 after a 13% crash.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.