XRP price might rally back to $0.50, heres why
- XRP price shows a shallow pullback after a 10% countertrend rally.
- The Relative Strength Index is now in the supportive territory after auctioning several days in oversold territory.
- Invalidation of the bullish countertrend is a breach below $0.42.
XRP price shows potential for more upside price action. Key levels have been defined.
XRP price shows rally potential
XRP price shows strength after a persistent week of bearish price action. After an 18% mudslide on the month, the bulls accomplished a 10% rally. The first pullback post-ascension is underway and remains at the current time shallow. There are a few other reasons to suggest that Ripple will rally higher,
XRP price currently auctions at $0.457. The digital remittance token now auctions while placed above the Relative Strength Index. This is a subtle cue of optimism as the XRP price has auctioned in oversold territory for nearly a week. Additionally, the volume remains exceptionally low when compared to previous sell-offs.
XRP/USDT 4-Hour Chart
Based on the developing technicals, the bears could witness a battle for grounds near the $0.485 liquidity level. If the bulls can stabilize and find support above the recently rejected 8-day exponential moving average at $0.470, an additional rally as high as $0.500 could occur, resulting in a 15% increase in market value.
The countertrend's strength depends on the newly established swing low at $0.420 remaining unbreached. If the bears manage to tag the low, a decline targeting $0.390 liquidity levels could occur. Such a move would result in a 14% decrease from the current XRP price.
In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market. -FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
