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XRP Price Prediction: Ripple builds momentum for a breakout

  • Ripple price trades comfortably along its ascending trend line.
  • XRP sees bullish sentiment growing, building momentum to break above the descending trend line.
  • Expect to see XRP price rally towards $0.89 as positive sentiment in crypto keeps blowing.

Ripple (XRP) price has been covering ground in its recovery from the significant drop at the beginning of April. The current uptrend is keeping above a green ascending trend line and showing no signs of weakness as bulls trading along the trend line prevent any bearish breakouts. The 55-day Simple Moving Average (SMA) has now also been acquired as support and is triggering a bit of a breather for market participants, enabling bulls to prepare for the next push north towards $0.8390 with the ultimate goal of $0.89.

XRP Price holds 15% gains in the coming days

Ripple price is taking a rest after a twelve-hour consecutive rally that consistently made higher highs, as bulls tried to break above the 55-day SMA at $0.79. The challenge met resistance and led to a pull back which found support at $0.7843 before finally swinging above the 55-day SMA and performing a close. With that, bulls are squeezing out any bearish stop losses that have been placed above the 55-day SMA. 

XRP price will see a further upswing as today's economic calendar is relatively light, and investors have had enough this week to assess the new situation. With the Relative Strength Index (RSI) still subdued below 50, there is plenty of room for bulls to cover ground, initially towards $0.8390 by breaking above the red descending trend line. After that, it is only a four cent jump to break above $0.8791 and test that 200-day SMA at $0.89.

XRP/USD 4H-chart

XRP/USD 4H-chart

At the moment of writing, no new sanctions have been implemented by the EU on Russia. The fact that there is division in the centric bloc on the timespan of phasing out Russian coal has created room for Russia to put even more pressure on plagued Europe, which could  possibly lead to economic retaliation that would deteriorate EU inflation even further. In such a scenario, expect investors to get nervous again and quickly take some profits,, pushing price action back down towards $0.77 and $0.75.

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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