XRP Price Analysis: Traders can long Ripple at this level for 20% gain
- XRP price struggles to move above the $0.400 hurdle as volatility disappears.
- A retest of the FVG, extending from $0.368 to $0.363, is an excellent place to enter a long position to realize 20% gains.
- Invalidation of this bullish outlook will occur if Ripple bulls fail to defend the $0.349 support level.
XRP price shows a clear sign of disappearing volatility, leading to a tight consolidation. Over the next three days, Ripple will likely break down, retesting a critical inflection point and triggering a rally.
XRP price ready to make a move
XRP price has been consolidating above the $0.372 support level, producing a string of lower highs. The setup looks bearish, and investors should expect a breakdown, leading to a quick pullback.
The downtick, however, will knock the XRP price down to retest the $0.368 to $0.363 area, which has an imbalance and is termed Fair Value Gap (FVG). This area is where interested investors should consider buying Ripple as the chances of a reversal at points of imbalance are high,
A resurgence of buying pressure at this level could trigger a quick run-up for the XRP price. If this move allows the remittance token to flip the $0.40 hurdle, it will likely target the $0.448 resistance level.
This XRP price move will constitute a 21% upswing and is likely where the upside is capped.
XRP/USDT 4-hour chart
While things are looking up for the XRP price, a breakdown of the $0.349 support level will create a lower low. This development will skew the odds in bears’ favor and invalidate the bullish thesis. In such a case, market participants can expect the XRP price to revisit the $0.316 foothold to regroup and plan its next move.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
