XRP is on the brink of recovery, with still one more crucial resistance barrier to overcome
- Ripple's XRP will jump to $0.82 once it clears a sloping trendline at $0.6.
- A move below $0.5 will invalidate the bullish scenario.
Ripple's XRP is changing hands at $0.57 at the time of writing, having gained over 10% on a day-to-day basis. However, despite the recovery, it is still 9% down on a weekly basis. The coin hit the multi-year high at $0.7824 on November 24 before speculative accounts started cashing out their profits and pushed the third-largest digital asset price below $0.6.
XRP market value has settled at $25 billion, while its average daily trading volume exceeds $11 billion.
XRP upside momentum is capped by $0.6
On the 4-hour chart, XRP's recovery is capped by $0.6 created by a sloping trend line of the symmetrical triangle pattern. This barrier is also reinforced by a combination of the 50 and the 100 EMA in the same timeframe. Only a sustainable move above this significant technical hurdle will improve the short-term technical picture and allow for an extended recovery with the initial target at the psychological $0.7 followed by $0.82, representing a 38% increase from the breakout level.
XRP 4-hour chart
On the other hand, a rejection from the critical resistance will bring $0.5 into focus. This psychological support coincides with the December 9 low and the lower line of the triangle. Once it is broken, the downside momentum will gain traction and bring XRP to the next local barrier at $0.45 created by 4-hour 200 EMA. Meanwhile, the ultimate bearish target comes at $0.31, which is a measured move from the triangle formation.
Author
Tanya Abrosimova
Independent Analyst
