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XRP price needs a definite break above $1.36 for the uptrend not to lose momentum

  • Ripple price saw bulls attempting to break above $1.36 this week but failed.
  • XRP price would need to see a firm break above and close if bulls do not want this rally to fade.
  • On the downside, long positions in XRP price are held by a mix of pivots trend lines and moving averages.

XRP price saw bulls attempting a second try to break above $1.36, followed by another fail and fade. The fade was triggered by global markets rolling over on the US inflation print that, in its turn, triggered heavy profit-taking on long positions in Ripple price. As investors start to doubt whether XRP price will see $1.81 anytime soon, Ripple price needs to offer bulls enough reason to add other positions to give the uptrend additional firepower.

XRP price sees bulls supported, but risk looms

Ripple price saw bulls trying to break out of the red descending trend line once and for all, but they hit a curb on the $1.36 level that proved its resistance in the past. The risk at hand for bulls is that price action faded too much after headwinds popped up from global markets rolling over. As XRP price action dipped back below the red descending trend line, bears could be able to push price action further to the downside for a reversal of the uptrend towards a downtrend. 

XRP price holds many supporting factors that could give bears quite a challenge before they could even start to think about a downtrend. Before reaching the green ascending trend line that has already proven its support on two previous occasions, bears face both the 55-day and the 200-day Simple Moving Averages (SMA) between $1.00 and $1.10. With that 55-day SMA, the monthly pivot comes in at $1.10, forming double firm support if XRP price would come down to this level.

XRP/USD weekly chart

XRP/USD weekly chart

As the number of support elements is quite significant, expect this uptrend not to be coming to a halt anytime soon, even if a few headwinds would persist. Expect another attempt to break out, which needs to be strong enough to get at least a daily close above $1.36. If that is again not the case, expect that time to fade too many and might see a push in XRP price towards the monthly S2 at $.075.



 

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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