XRP Price Forecast: Ripple upside potential capped at 22%
- XRP price shows strength as it bounced off the daily demand zone, extending from $0.700 to $0.752.
- Investors can expect Ripple to retest the $0.944 resistance barrier, coinciding with the 200-day SMA.
- A breakdown of the $0.700 support level will invalidate the bullish thesis.
XRP price has witnessed a quick rally as it bounced off a crucial support level. Although the crypto market, in general, shows a bullish outlook, Ripple’s upside potential seems to be capped due to a barrage of resistance barriers.
XRP price in an uphill battle
XRP price bounced off the $0.700 to $0.752 demand zone, preventing a steep correction. The resulting upswing has propelled Ripple by 13% to where it currently trades - $0.792. Although there might be a minor retracement, investors can expect the uptrend to continue.
The initial resistance level at $0.817 is the first barrier XRP price needs to clear. Doing so will allow the remittance token to face a formidable level at $0.861 as it coincides with the 50-day Simple Moving Average (SMA).
If buyers band together, there is a chance XRP price might venture higher and retest the $0.944 hurdle, coinciding with the 200-day SMA. This move would bring the total gain for XRP price to 22%.
Any further attempt at moving higher seems unlikely given the uncertain nature of BTC.
XRP/USDT 4-hour chart
While things are looking up for XRP price, there are a plethora of hurdles that plague its path.
If XRP price produces a four-hour candlestick close below $0.700, it will create a lower low, invalidating the bullish thesis.
This development could open the path for Ripple to explore lower and retest the $0.60 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.
