Sheldon McIntyre, CMT
FXStreet
- XRP price is finding significant support at the 50-day simple moving average (SMA).
- If this support level holds, Ripple could rise to the next short-term resistance at $0.500.
- This cryptocurrency recently printed the highest daily volume for an up day since February 22.
XRP price is gradually following through the breakout from a symmetrical triangle at $0.450. Significant resistance does not appear until $0.644, suggesting that this cryptocurrency has more room to go up before any retracements.
XRP price fighting off the negative news
Ripple price has been relatively resilient considering the ongoing SEC lawsuit and a new attempt by the regulatory agency to access the company's executives personal bank records. To compound the risk is the previously filed class-action lawsuit by Moneygram investors over Ripple failing to inform them of their relationship’s inherent risks.
Despite Coinbase and Binance suspensions, XRP engineered a spike from a symmetrical triangle on March 16 with a gain of 5.62%. It was the best daily performance since March 4, and it was supported by the highest volume for a green candlestick since February 22.
Over the last two trading days, XRP has struggled to overcome the magnet effect of the 50-day simple moving average (SMA) around $0.465, and volume has dried up. Nevertheless, Ripple price is holding the breakout, and the Relative Strength Index (RSI) has turned upwards, confirming the bullish momentum.
If the new trend accelerates, it will discover an immediate challenge at $0.500, a price level that has been resistance and support extending back to the end of January. There is a price vacuum after $0.500 that should free XRP price to advance quickly to $0.644.
Such an upward price action would represent a 40% gain from the symmetrical triangle breakout at $0.450.
XRP/USD daily chart
There is no doubt that Ripple’s ongoing legal problems will impact XRP price as more news emerge, and a negative development could quickly derail the latest advance. Support will first appear at the February 23 low at $0.362 in the event of a correction, followed by the February 2 low at $0.340.
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