- XRP price failed to test the $0.941 to $1.172 demand zone before surging higher.
- Clearing the supply barrier ranging from $1.340 to $1.477 could propel Ripple to $1.769.
- A breakdown of $0.941 will invalidate the bullish thesis and trigger a new downtrend.
XRP price has witnessed a massive crash due to the Tesla-induced market crash on Wednesday. Now Ripple could either test the immediate demand barrier or slice through the supply zone to rally higher.
XRP price hints at a u-turn
XRP price dropped roughly 32% after creating a local top on May 6. Since this point, Ripple has continued forming lower highs and lower lows. Two of its recent attempts to surge higher seem to have failed due to lacking bullish momentum and resistance from the supply zone that stretches from $1.340 to $1.477.
Therefore, it is likely that XRP price will retrace 12% to tag the support area that extends from $0.941 to $1.172. This move will provide the remittance token the extra "oomph" required to slice through the said resistance zone.
A decisive 4-hour candlestick close above $1.477 will provide a secondary confirmation of the upswing.
The first area of interest in this uptrend is the 162% Fibonacci extension level at $1.653. If buying pressure persists beyond this point, XRP price could tag the swing high at $1.769. All in all, this bull rally would denote a 30% rise from the current price level.
XRP/USDT 4-hour chart
While things seem to be looking up for XRP price, investors need to be aware of a sudden spike in selling pressure that crashes the market as it did during Wednesday or Thursday’s trading session. If the sellers slice through the $0.941 support level in a convincing fashion, it will invalidate the bullish thesis and open up the possibility of an extended downtrend.
In that case, XRP price might slide 6% to tag the swing low at $0.886, created on April 23.
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.
Latest Crypto News & Analysis
Editors’ Picks
Bitcoin Weekly Forecast: BTC price surges despite threat of crash to $36k
Bitcoin price shows lackluster performance after the recent crash, giving rise to the credibility of the run-up to $50,000. As the September 24 daily candlestick bathes in red, the chances of an uptrend continue to diminish.
XLM Price Prediction: Stellar traps bulls as it targets $0.195
Since Wednesday, the Stellar (XLM) price has been paring back losses, but price action has already started to fade on XLM. Bulls cannot push the price above $0.30, and XLM price has startedto form a bull trap.
Polkadot Price Prediction: DOT will hit $40 by October
Polkadot (DOT) bears are scrambling to cash in on their profits as price action for DOT reverses quite rapidly, with bulls overtaking control and pushing price action back toward levels achieved before the correction began.
PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’
China’s central bank cracks down on illegal financial activities from overseas cryptocurrency exchanges. The recent announcement marks the People’s Bank of China's (PBoC) strongest move against cryptocurrency mining and trading to date.
Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive
Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.