- XRP price action consolidates after two days of wide-ranging price action.
- The bulls stopped in their tracks for a straight run higher but set the record straight again.
- The 200-day SMA turns out to be the driving force for the push higher.
Ripple (XRP) price action drew in favor of the bulls this week, but price action got distorted on Wednesday with a breakout in both directions, scrambling buyers to get back in and defend the rally. With price action in XRP squeezed toward each other, with lower highs and higher lows, the stage looks set for bulls to break out toward $1.42.
XRP price bulls have 200-day SMA in their corner as guiding star
XRP has been on the breakout path after the pennant breakout at the beginning of October. With price action in Ripple reaching an echelon higher, bulls lost control over their run on Wednesday. Bears were able to cut short further upside on the rejection against the green ascending trend line. Bulls abandoned their longs, and the price dipped lower back below $1.
With the 200-day Simple Moving Average (SMA) coming in at $0.98, bulls saw the discount opportunity and set the record straight in XRP with price action back above $1 on Thursday. With price consolidating further this Friday, expect a breakout to the upside in favor of the bulls as that 200-day SMA will act as the backbone for the bull run.
XRP/USD daily chart
The first issue ahead for the bulls is breaking back above the green ascending trend line. If the price can close above there by the end of the week, bulls then have two bullish elements in their corner backing them up. At that moment, a bullish triangle is forming again with $1.42 as base and target for at least a retest, possibly a pop higher toward $1.76.
In case market sentiment should shift to the downside, for example, with the job report later this afternoon, expect some headwinds to pop up for XRP price action. The consolidation could then fall in favor of the bears. Expect a return to a lower support level, near $0.84, that would break the 200-day SMA and switch off the lights for now on this bull run.
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.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.