• XRP price shows signs of an upswing as it bounces off a stable support barrier around the $0.38 level.
  • This bounce was crucial in keeping Ripple’s ascending parallel channel pattern intact.
  • The “buy signal” from the SuperTrend indicator coupled with the bullish momentum suggests that a 70% upswing is possible.

XRP price hit a local top on February 13 at $0.64, followed by a correction that pushed it down by 40%. In hindsight, this top coincided with the ascending parallel channel’s upper trendline. Now, the remittance token is preparing for another leg-up as it witnesses a spike in buying pressure.

XRP price eyes a higher high

XRP price correction seen on December 29, 2020, January 27, and February 23 formed the swing lows. On the other hand, Ripple price action on December 25, 2020, and February 13 resulted in swing highs. Drawing trendlines along the pivot points creates an ascending parallel channel.

Although XRP hasn’t broken out of the channel, the target for such a technical pattern is determined by adding the channel’s height to the breakout point. This setup has a bearish bias and tends to breakout lower.

However, as mentioned above, XRP price managed to bounce off the channel’s lower trendline. This bullish momentum indicates that buyers might push Ripple by 70% towards the $0.78 level.

Supporting this bullish momentum is the SuperTrend indicator’s buy signal, which also played a vital role in the said bounce.

Investors should note that this run-up isn’t without hurdles. XRP price rally will face a supply barrier around the $0.57 area, a confluence of the 78.6% Fibonacci retracement level, and the channel’s middle line. A decisive daily candlestick close above this price point would instill confidence in buyers, pushing XRP to its target at $0.78.

XRP/USDT 1-day chart
XRP/USDT 1-day chart

Contrary to the bullish outlook, a lackluster performance by bulls could trigger a pullback. If this correction leads to a daily candlestick close below the 50% Fibonacci retracement level at $0.36, it will invalidate the bullish thesis and the SuperTrend indicator’s buy signal.

XRP/USDT 1-day chart
XRP/USDT 1-day chart

In such a case, XRP price could slide past the 38.2% Fibonacci retracement level at $0.30 and hit $0.26.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

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