Sarah Tran
Independent Analyst
- XRP price is preparing for a 40% ascent if it is able to slice through and print a daily close above $1.27.
- The last hurdle for Ripple is the resistance trend line that has barred the token from recording a higher high since mid-April.
- However, a technical indicator suggests that XRP price may find its last obstacle challenging as it forms a top signal.
XRP price has been consolidating for over six months and is now on the edge of a 39% ascent as it nears a critical resistance level. If Ripple manages to slice above its last obstacle, a climb toward $1.77 is on the radar.
XRP price faced with stiff hurdle
XRP price appears ready for a massive breakout as Ripple has tagged the upper boundary of the prevailing symmetrical triangle pattern on the daily chart. The governing technical pattern suggests a bullish target of a 39% climb toward $1.77 if the cross-border remittance token can print a daily close above $1.27.
Adding credence to the bullish outlook is the Arms Index (TRIN), which gauges overall market sentiment, suggesting slightly more buyers than sellers in the market.
The topside trend line of the symmetrical triangle has been acting as heavy resistance for XRP price, as Ripple was unable to slice above this trend line since April 16. Breaking above $1.27 could mean a massive move for the token toward the upside, fueled by bullish momentum.
However, if XRP price fails to slice and close above $1.27, Ripple could continue consolidating as it falls back within the prevailing chart pattern, trending sideways until further intentions are revealed.
XRP/USDT daily chart
The first line of defense for XRP price is at the 61.8% Fibonacci retracement level at $1.20, then at the 50% Fibonacci retracement level at $1.13. Additional support for Ripple may emerge at the 21-day Simple Moving Average (SMA) at $1.12.
The strongest foothold for XRP price if selling pressure continues to increase is at $1.06, where the 38.2% Fibonacci retracement level, 50-day and 100-day SMAs and the support line given by the Momentum Reversal Indicator (MRI) intersect.
Investors should note that the MRI has also flashed a warning sign, suggesting a top signal that indicates XRP price could reverse and continue to consolidate. Any additional increase in bearish momentum could send Ripple down toward the 200-day SMA at $1, sitting near the multi-month support trend line.
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