XRP bulls defend uptrend and push for $1
|- Ripple price gets support at a critical level to maintain an uptrend.
- XRP sees RSI drift away from oversold, giving a bullish signal.
- This week, expect a recovery on the back of improved market sentiment as Monday sees equities on the front foot.
Ripple (XRP) has been stuck in a wedge or pennant pattern since last week with lower highs and higher lows, consolidating towards a breakout. The breakout looks to be unfolding today, supported by a positive turn in market sentiment, which is pushing equities into profit, and is expected to lift cryptocurrencies as well. As more investors start picking up XRP coins, expect a return towards $1.0, holding a 20% potential gain by the end of the week.
XRP sees buying volume picking up as the RSI drifts higher
Ripple price is breaking out of its consolidation in both directions. Bears might be in for a surprise, however, as certain elements appear to be turning against them this morning, opening a window for a bullish knee-jerk reaction that could last all week with a big squeeze back up to $1.0. The main driver for this is the support held over the weekend at $0.78, which was vital to defend to keep a bullish uptrend intact.
XRP is now awaiting the spillover effect from equities trading firmly in the green this morning during the European session. This has created a tailwind that should convince investors to further play the risk-on trade, which in turn could see a lift in buying volume, making XRP price break higher, above $0.88. From there, a jump towards $0.95 could meet resistance and slowdown when it encounters the 200-day Simple Moving Average (SMA), as it triggers profit-taking as happened on December 09.
XRP/USD daily chart
Expect the recovery to continue as long as the Relative Strength Index (RSI) keeps moving higher on higher buying volume, and as long as the equities tailwind remains. These factors could push XRP price action back to $0.99 and possibly $1.05 by the end of the week. Should central banks rattle markets with very hawkish tones and rate hikes, however, expect those tailwinds to fade quickly and flip to headwinds, with sell-offs in equity indices and cryptocurrencies. XRP would then break lower towards $0.78 and possibly spiral even further down towards $0.62.
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.