Sheldon McIntyre, CMT
Independent Analyst
- XRP price fails to rally above the breakout high of May 6 at $1.76.
- Ripple has lagged other cryptocurrencies raising questions over the durability of the rally.
- Ichimoku cloud provides support on the daily chart.
XRP price was dealt a blow yesterday. As a result, the outlook has turned neutral and elevates the importance of a bullish news roll for the ongoing legal case between Ripple and the Securities and Exchange Commission (SEC).
XRP price missing the FOMO effect in May
Yesterday, XRP price failed to conquer the cup-with-handle breakout high of $1.76 and undercut the handle low at $1.31, voiding the pattern and prompting a reconsideration of the bullish outlook for the remittance token. Moreover, it raises the probability of a more complex bottoming process taking control of Ripple.
Moving forward, it is imperative to consider the Ichimoku cloud ranging from $1.32 to $1.18 for downside support, an area that halted yesterday’s notable decline. Adding to the value of the range is the intersection with the 50-day simple moving average at $1.17. Any failure at that level will introduce a test of the psychologically important $1.00 and potentially the April low at $0.87.
XRP/USD daily chart
A bullish scenario begins with a daily close above $1.76. If successful, XRP price could test the April 14 high at $1.96.
All eyes will be focused on the psychologically important $2.00 and the 61.8% Fibonacci retracement of the 2018-2020 decline at $2.08.
It will take serious commitment and emotion to overcome the $2.00 price area, but if successful, speculators can look to the 78.6% retracement of the 2018-2020 decline at $2.61 as the next significant resistance.
Unlike other cryptocurrencies, Ripple is challenged by the overhang of an SEC case that could sway XRP price in an instant. Understandably, the altcoin has not accomplished much since the 32% gain on April 26, and it is conceivable that an indecisive pattern will persist in the days or weeks ahead.
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
Bitcoin Weekly Forecast: BTC remains calm before a storm
Bitcoin price has been consolidating between $85,000 and $88,000 this week, approaching the lower boundary of the consolidation range when writing on Friday. A K33 Research report explains how the markets are relatively calm and shaping up for volatility as investors absorb the tariff announcements.
Donald Trump’s tariff policies set to increase market uncertainty and risk-off sentiment
US President Donald Trump’s tariff policies are expected to escalate market uncertainty and risk-off sentiment, with the Kobeissi Letter’s post on X this week cautioning that while markets may view the April 2 tariffs as the "end of uncertainty," it anticipates increased volatility.
Ethereum Price Forecast: Whales increase buying pressure as developers set April 30 for Pectra mainnet upgrade
Ethereum developers tentatively scheduled the Pectra mainnet upgrade for April 30 in the latest ACDC call. Whales have stepped up their buying pressure in hopes of a price uptick upon Pectra going live on mainnet.
BTC stabilizes while ETH and XRP show weakness
Bitcoin price stabilizes at around $87,000 on Friday, as its RSI indicates indecisiveness among traders. However, Ethereum and Ripple show signs of weakness as they face resistance around their key levels and face a pullback this week.
Bitcoin: BTC remains calm before a storm
Bitcoin (BTC) price has been consolidating between $85,000 and $88,000 this week, approaching the lower boundary of the consolidation range when writing on Friday.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.