XRP price to rebound after the ceasefire in Ukraine
- XRP price action tries to pop above $0.7250, and the 55-day SMA.
- Ripple bulls still have some way to go towards $0.75, to break the high of yesterday and deliver a bullish signal.
- Expect to see a rejection at the monthly pivot at $0.76 as the RSI lacks a conviction for any further up move.
XRP price action is on the front foot this morning in the European session, but already at a first look at the chart, that is where the good news ends. The move is minimal,contained and looks to lack conviction as bulls and investors are not committing to putting in enough pressure to squeeze bears out of their positions. It looks like the current ceasefire in Ukraine is giving some relief to the depressing price action in XRP but will be cut short once the attacks recommence, with XRP set to dip below $0.70.
XRP price can use the decompression window to book some small profits before the ceasefire ends
XRP price action is printing positive again today as bulls are trying to squeeze out some profits in calm markets after the new ceasefire in Ukraine looks to be holding. But bulls are not fully committed to the move, and the Relative Strength Index shows a lack of conviction to go in full size, resulting in a relatively muted and modest gain intraday between 1% to max 5% of profit. Expect to see profits hold into the US session, ticking either $0.75 or $0.76 to the upside.
Presuming that some good news should continue in the coming hours and days, as another round of talks has been agreed upon, expect to see a bullish squeeze with higher lows and price action being pushed against a ceiling at either $0.76 or $0.78. On a break above $0.78 price action could see a very quick punch-through-move towards $0.84. That would mean a 16% gain in the making based on some positive headlines that keep persisting and adding fuel to the rally in the coming days by the end of the week.
XRP/USD daily chart
The slightest shift in negative news could easily undo the market's current positive catalyst. Expect to see a break back towards $0.70, with the risk of bears adding to their short positions depending on the severity of the new headlines. With that move, a drop towards $0.65 or even $0.62 would not be unthinkable as bears will try to catch bulls in a trap and squeeze them out as far as they can.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
