- XRP price shows signs of an upswing as it bounces off a stable support barrier around the $0.38 level.
- This bounce was crucial in keeping Ripple’s ascending parallel channel pattern intact.
- The “buy signal” from the SuperTrend indicator coupled with the bullish momentum suggests that a 70% upswing is possible.
XRP price hit a local top on February 13 at $0.64, followed by a correction that pushed it down by 40%. In hindsight, this top coincided with the ascending parallel channel’s upper trendline. Now, the remittance token is preparing for another leg-up as it witnesses a spike in buying pressure.
XRP price eyes a higher high
XRP price correction seen on December 29, 2020, January 27, and February 23 formed the swing lows. On the other hand, Ripple price action on December 25, 2020, and February 13 resulted in swing highs. Drawing trendlines along the pivot points creates an ascending parallel channel.
Although XRP hasn’t broken out of the channel, the target for such a technical pattern is determined by adding the channel’s height to the breakout point. This setup has a bearish bias and tends to breakout lower.
However, as mentioned above, XRP price managed to bounce off the channel’s lower trendline. This bullish momentum indicates that buyers might push Ripple by 70% towards the $0.78 level.
Supporting this bullish momentum is the SuperTrend indicator’s buy signal, which also played a vital role in the said bounce.
Investors should note that this run-up isn’t without hurdles. XRP price rally will face a supply barrier around the $0.57 area, a confluence of the 78.6% Fibonacci retracement level, and the channel’s middle line. A decisive daily candlestick close above this price point would instill confidence in buyers, pushing XRP to its target at $0.78.
XRP/USDT 1-day chart
Contrary to the bullish outlook, a lackluster performance by bulls could trigger a pullback. If this correction leads to a daily candlestick close below the 50% Fibonacci retracement level at $0.36, it will invalidate the bullish thesis and the SuperTrend indicator’s buy signal.
XRP/USDT 1-day chart
In such a case, XRP price could slide past the 38.2% Fibonacci retracement level at $0.30 and hit $0.26.
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
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.