- XRP price is preparing for a 40% ascent if it is able to slice through and print a daily close above $1.27.
- The last hurdle for Ripple is the resistance trend line that has barred the token from recording a higher high since mid-April.
- However, a technical indicator suggests that XRP price may find its last obstacle challenging as it forms a top signal.
XRP price has been consolidating for over six months and is now on the edge of a 39% ascent as it nears a critical resistance level. If Ripple manages to slice above its last obstacle, a climb toward $1.77 is on the radar.
XRP price faced with stiff hurdle
XRP price appears ready for a massive breakout as Ripple has tagged the upper boundary of the prevailing symmetrical triangle pattern on the daily chart. The governing technical pattern suggests a bullish target of a 39% climb toward $1.77 if the cross-border remittance token can print a daily close above $1.27.
Adding credence to the bullish outlook is the Arms Index (TRIN), which gauges overall market sentiment, suggesting slightly more buyers than sellers in the market.
The topside trend line of the symmetrical triangle has been acting as heavy resistance for XRP price, as Ripple was unable to slice above this trend line since April 16. Breaking above $1.27 could mean a massive move for the token toward the upside, fueled by bullish momentum.
However, if XRP price fails to slice and close above $1.27, Ripple could continue consolidating as it falls back within the prevailing chart pattern, trending sideways until further intentions are revealed.
XRP/USDT daily chart
The first line of defense for XRP price is at the 61.8% Fibonacci retracement level at $1.20, then at the 50% Fibonacci retracement level at $1.13. Additional support for Ripple may emerge at the 21-day Simple Moving Average (SMA) at $1.12.
The strongest foothold for XRP price if selling pressure continues to increase is at $1.06, where the 38.2% Fibonacci retracement level, 50-day and 100-day SMAs and the support line given by the Momentum Reversal Indicator (MRI) intersect.
Investors should note that the MRI has also flashed a warning sign, suggesting a top signal that indicates XRP price could reverse and continue to consolidate. Any additional increase in bearish momentum could send Ripple down toward the 200-day SMA at $1, sitting near the multi-month support trend line.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.