- XRP price is knocking on a multi-year declining trend line, hinting an explosive breakout if its breached.
- Investors can expect a 20% upswing to tag the 200-week SMA at $0.493.
- Invalidation of the bullish thesis will occur if Ripple slides below the EMA confluence at $0.374.
XRP price shows that it is approaching a crucial resistance level, a breakout above this level will trigger an explosive move. Ripple bulls need to be extremely cautious as to not get trapped if there is a sudden sell-off delaying the breakout.
XRP price at an important level
XRP price has been stuck in a downtrend, producing six lower highs since November 2021. A trend line connecting these swing points reveals a declining resistance level. Although Ripple buls have produced a daily candlestick close above this level, it is not confirmed yet.
A swift move above this level followed by a retest that holds will confirm that the bulls are here to stay. Looking at the recent price action confirms that there is interest in the remittance token as it has sliced through the 30-day, 50-day and 100-day Exponential Moving Averages (EMAs). Additionally, a retest of these EMAs confirmed there is a buyer interest.
Going forward, a breakout of from this mult-year declining trend line will allow XRP price to rally 20% to tag the next hurdle which is the 200-day Simple Moving Average (SMA) at $0.493. Beyond this level, Ripple bulls could further ascend to retest the $0.596, bringing the total rally to 45%.
XRP/USDT 1-day chart
While things are looking good, XRP price could get rejected at the declining trend line, delaying the breakout. In such a case, Ripple will find support at roughly $0.374, which is the confluence of 30-day, 50-day and 100-day EMAs.
However, a daily candlestick close that flips the aforementioned level into a resistance barrier will invalidate the bullish thesis. In such a case, XRP price could slide 11% and tag the $0.332 support level.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Ethereum supply shrinks by 70,000 ETH. Will Ethereum price hit $2,000?
Ethereum transition from Proof-of-Work to Proof-of-Stake (PoS) was the last major upgrade to the altcoin’s blockchain and the Shanghai hard fork is the next one. The shift to PoS purged 70,000 ETH tokens from the altcoin’s circulating supply.
Decentraland Price Forecast: What to expect from MANA as Metaverse Fashion Week kicks off
Decentraland price (MANA) has identified critical support on day one of the Metaverse Fashion Week. The token is trading horizontally on the four-hour timeframe as bulls push to break above a descending trendline.
Ethereum devs confirm withdrawals to begin on April 12; Here's what to expect from ETH price
Ethereum is on the verge of bringing about one of the biggest upgrades to the blockchain since the Merge. The arrival of withdrawals has been anticipated for a long time now, however, it may not be as lucrative for Ethereum price as one might expect.
Ripple holders' profit taking hits a 19-month high as XRP price shoots up by 42%
XRP price has performed beyond expectations and has marked a multi-month high, restoring confidence in its investors. These holders have also made the most of the situation and turned to sell, which could backfire on the price action soon.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.